Global chip stocks continued to slump after Dutch semiconductor-equipment maker ASML Holding warned the recovery for some areas of the industry would be slower than expected, raising fears among investors of a prolonged downturn in demand.

Key Takeaways Nvidia and other chip stocks lost ground Tuesday, weighed down by a report that the Biden administration is considering caps on exports to certain nations.Bloomberg said the focus was on Persian Gulf countries that have growing interest in AI and the means to purchase the technology.

Nvidia stock was falling Tuesday. The chip maker may face more limitations on exports of its advanced artificial intelligence chips. U.S. government officials have discussed capping sales of advanced AI chips from the U.