** Shares of chip companies Nvidia NVDA.O, Advanced Micro Devices AMD.O, Intel INTC.O, Marvell Technology MRVL.O and Broadcom AVGO.O down between 1.2% and 3.1% in trading before the bell
** U.S. government says it would issue a new regulation designed to control access to U.S.-designed artificial intelligence chips and technology by other countries - curbs will take effect 120 days from publication
** Shares of cloud service companies Microsoft MSFT.O, Amazon.com AMZN.O, Oracle ORCL.N and Alphabet GOOGL.O were down between 0.6% and 1.2% in premarket trading
** U.S. will expand restrictions on advanced GPUs needed to build the data center clusters used to train advanced AI models, divides countries into three tiers
** Cloud service vendors will be able to seek global authorizations to build data centers, but will have to abide by stringent conditions and restrictions
** These firms will be allowed to deploy only 50% of their total AI computing power outside the U.S., no more than 25% outside of the tier 1 countries, and no more than 7% in a single non-tier 1 country
** Chip-making equipment supplier stocks - Lam Research LRCX.O, Applied Materials AMAT.O and Analog Devices ADI.O - down between 1.1% and 2.2% premarket
(Reporting by Akash Sriram in Bengaluru)
((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;))
