Nvidia broke an important chart level on Friday amid reports of its response to a new proposal to limit chip sales. Meanwhile, Nvidia's executives tackled a possible chip ban from the outgoing Biden administration.

Nvidia on Thursday criticized a reported plan by the Joe Biden administration to impose new restrictions on AI chip exports, saying that the outgoing U.S. leader should not "preempt incoming President Trump" by enacting a last-minute policy.

The chip maker urged the incumbent president not to 'pre-empt' the Trump administration with a policy to tighten export controls.

The Biden administration's proposal would put more pressure on companies like Nvidia to crack down on where resellers ultimately send their chips.

Nvidia stock fell early Friday as the chip maker hit back at the Biden administration over reported plans to tighten restrictions on sales to China and other countries.