Nvidia Warns of Product Snags From Tightening US Chip Rules (3)

Nvidia Corp. suffered its worst stock decline in more than two months after the Biden administration stepped up efforts to keep advanced chips out of China, a campaign that includes restricting the company’s sale of processors designed specifically for the Chinese market.

Santa Clara, California-based Nvidia warned that the new rules could hinder product development and cause other difficulties, though the changes aren’t likely to take a financial toll in the short term.

The latest regulations, announced Tuesday, also limit exports to two Chinese artificial intelligence chip firms that are seen as rivals to US-based Nvidia. The rules — aimed ...