10:04 AM EDT, 07/07/2025 (MT Newswires) -- (Updates with Nvidia ( NVDA ) response in the last paragraph.)

Nvidia ( NVDA ) may face new limits as the Trump administration plans to restrict shipments of its advanced AI chips to Malaysia and Thailand to prevent re-routing into China, Bloomberg News reported Friday, citing people familiar with the matter.

A draft US Department of Commerce rule would reportedly add the two Southeast Asian countries to a restricted list to tighten controls on components already banned from sale to China.

The proposed measure would also repeal the Biden-era AI diffusion rule, which had drawn criticism from allies and chipmakers, Bloomberg reported.

Restrictions imposed in 2022 and expanded since would remain in place for China and over 40 countries identified last year for smuggling risks, the news outlet reported.

The draft rule does not address whether the US will regulate AI chip use in overseas data centers, and may reportedly still change before finalization.

Nvidia ( NVDA ) declined to comment when reached by MT Newswires, while the Commerce Department did not immediately respond to a request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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