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** Nvidia's shares down 4.8% to $131.53 on Tues, a day after chipmaker notched record close ** Stock on Mon finished up 2.4%, and about 2% shy of its intraday all-time peak of $140.76 set on Jun 20. with investors betting on strong demand for its next-generation Blackwell AI processors

** Late Mon, Bloomberg News reported that U.S. officials have discussed limiting sales of advanced AI chips from Nvidia NVDA.O and other American companies including Advanced Micro Devices

on a country-specific basis

** U.S. focused on Persian Gulf countries, the report said, adding that new approach would set a ceiling on export licenses for some countries in the interest of national security

** The Philadelphia semiconductor index falling 3.5% on the session

** AMD off 4.5% on Tues, while Intel down 2.4%

** Among worst SOX performers include chip-making equipment makers Applied Materials , Lam Research and KLA Corp , all off ~6%-~7%

** U.S.-listed shares of British chip designer Arm Holdings

off >6%, Micron Technology down 3%

** With move on Tues, SOX up ~25.5% YTD

(Lance Tupper is a Reuters market analyst. The views expressed are his own) ((lance.tupper@thomsonreuters.com lance.tupper@tr.com 1-646-279-638))