In recent developments within the technology sector, we published an article highlighting 10 AI stocks that are experiencing a surge due to significant news. Today, we will specifically focus on Intel Corporation (NASDAQ: INTC) and evaluate its standing among other thriving AI stocks in the current landscape.

According to a report by The New York Times, the Trump administration is intensifying its efforts to prevent China from advancing in the artificial intelligence race. As part of these measures, the administration is contemplating imposing penalties that would effectively prohibit the Chinese firm DeepSeek from acquiring U.S. technology. This move is aimed at countering the progress made by this Beijing-based start-up, which has garnered attention on Wall Street for its innovative, cost-effective AI models.

DeepSeek disrupted the market a few months ago with its efficient algorithms and models, prompting the U.S. government to tighten export controls and increase scrutiny over technology investments involving China. A primary target of these export controls has been Nvidia, the leading graphics processing unit (GPU) manufacturer, whose chips are believed to have played a crucial role in powering DeepSeeks AI systems. Despite the existing stringent export regulations, there are growing concerns about the effectiveness of these controls, as DeepSeek reportedly managed to obtain thousands of Nvidia GPUs, raising alarms among U.S. officials.

To mitigate the risk of China gaining an upper hand in AI technology, U.S. officials are now actively working to prevent the sale of advanced chips to Chinese firms. This development is critical as the U.S. grapples with maintaining its technological edge in the global market.

In a related move, the U.S. House Select Committee on China has taken decisive action by sending a formal letter to Nvidia, demanding an explanation regarding the sales of its chips to China and Southeast Asia. The committee seeks to uncover how these chips ended up powering DeepSeeks AI models, given the existing export restrictions.

As the U.S. government tightens its export regulations towards China, Nvidia has disclosed that it anticipates a significant financial impact, estimating a $5.5 billion (4.2 billion) hit due to these new rules. The company will now require special licenses to export its popular H20 AI chip to China, a move designed to address concerns that these products may be utilized or redirected to supercomputers within China.

Furthermore, Nvidia announced that federal officials have informed them that this license requirement will remain in effect for the foreseeable future, indicating a long-term shift in export policy.

Marc Einstein, an expert at Counterpoint Research, pointed out that the projected $5.5 billion financial impact aligns with industry estimates. He also speculated, As we have seen in recent days and weeks, this could largely be a negotiating tactic. I wouldnt be surprised to see some exemptions or changes made to tariff policy in the near future.

In our article, we identified promising AI stocks by meticulously analyzing news articles, stock evaluations, and press releases. These stocks have gained popularity among hedge funds as well, with data reflecting their status as of the fourth quarter of 2024.