Some U.S. are holding up efforts to finalize a deal that would let the UAE buy billions of dollars of Nvidia’s AI chips due to national-security concerns.

President Donald Trump said late Tuesday that new tariffs on semiconductors could be coming soon. Wedbush analysts said his stance could soften.

Nvidia has profited enormously from rapid adoption of AI, becoming the first company to have its market value surpass $4 trillion last week.

Donald Trump’s decision to let Nvidia sell powerful artificial intelligence (AI) microchips to China has sparked fears that the technology could be used to boost Beijing’s military. Charles Parton, from the think tank Rusi, said there would “inevitably” be sales of semiconductors “which have the possibility of military use”.

The S&P 500 was virtually unchanged in midday trading and just a bit below its all-time high, even as more than four out of every five stocks within the index fell.