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 on Monday.

STORY: Shares of Nvidia fell as much as five percent Monday morning after the U.S. government said it would further restrict exports of artificial intelligence chips.The new regulations are aimed at keeping advanced computing power in the United States and among its allies while finding more ways to block China's access.

Just a week to Trump’s inauguration the Biden administration is still making policies. The outgoing administration updated the export rule, which is designed to regulate the flow of AI to “adversaries” like China.

Nvidia (NASDAQ:NVDA) on Monday criticized new efforts by the outgoing Joe Biden administration to restrict export of American technology. Shares of Nvidia fell about 3% premarket on Monday. "By restricting access to mainstream computing applications around the world,