The global trade war has intensified, forcing both U.S. and Chinese tech companies to reconsider their strategies. Nvidia, a major chip producer, has become the latest example, as the U.S. has imposed severe new restrictions on its H20 AI chips to the Chinese market. This brings a potential $5.5 billion financial loss for Nvidia alone this quarter and a 10% earnings hit for the year, according to Bank of America’s Vivek Arya, a semiconductor industry analyst. However, many experts see the risk as less severe than previously feared.
Key facts reveal that the restrictions are an “unwelcome but somewhat expected, manageable risk.” As the专项行动 have been deemed manageable by vice chair of the Bank of America’s investment division Stacy Rasgon, it can be seen as a “concession” from companies like Silicon suppressions versus the White House to effectively kill Biden’s most severe AI regulations. This illustrates a more cautious approach necessary for the chip industry amid heightened competition.
Hardely one million shares of Nvidia were trading down, far outpacing the broader market’s losses of 1.2%. While Nvidia remains the most valuable US company in the world, a smaller $200 billion decline in market capitalization compared to the S&P 500 and Nasdaq accounted for. The chip industry’s developmental phase still persists, with shares of high-value chip companies like Intel and TSMC both descending by 3%, and TSMC even going lower by 6% after noticing losses tied to China’s import restrictions.
Elaborating on this, Trinity professor Kevin Cassidy and Kevin Garrigan predict that semiconductor chip companies are unlikely to see another 10% earnings drop for the next two quarters, fearing a similar trend until the专项行动.end. Indeed, projections suggest a 25% drop in Nvidia shares since Election Day, far worse than the S&P’s 8% decline, without including cash dividends.
From the_arrays to the billion-dollar stock, theomentum has been comparatively uneven. As one of the world’s largest companies, Nvidia is UIScrollView the most valuable US company. With profit surges driven by OpenAI’s”.$_ and Tesla’s full self-driving aspirations, it’s a pivotal time for the tech industry.
