Nvidia is facing issues with the manufacturing of its GB200 NV liquid-cooled rack systems, according to an analyst.

Nvidia faces a significant revenue threat due to the latest U.S. export restrictions on artificial intelligence chips, designed to limit the global distribution of these coveted processors, analysts and investors said.

The Biden administration’s latest bid to curb China’s access to the most advanced AI models and AI chips could have a major impact on the AI boom and its enablers, most prominently chip giant Nvidia.

Global data centers are filling up with GPUs and Nvidia has so far claimed an estimated 90% of that market share. Highly complex chips like GPUs are largely manufactured in Taiwan, but most of the companies that design them are based in the US and so their products are within the Department of Commerce's jurisdiction.

Nvidia shares were up 2.2% at $136.22 in premarket trading. The stock fell 2% on Monday. The Biden administration on Monday outlined AI chip restrictions that would apply caps on

Under the Joe Biden government's framework, roughly 20 key allies and partners would face no restrictions on accessing chips. The allies without restrictions include Australia, Belgium, Canada, Denmark,