What's Going On With Chip Stocks Nvidia and AMD Wednesday
Portfolio Pulse from Anusuya Lahiri
Nvidia Corp, Advanced Micro Devices, and other chipmakers are trading lower amid reports of the U.S. adopting a stricter stance over China's AI ambitions. The U.S. plans to update export controls on AI chips to limit China's access to advanced technologies with military applications. This has led to a growing market for smuggled Nvidia GPUs in China. Semiconductor ETFs VanEck Semiconductor ETF and IShares Semiconductor ETF are also trading lower.

June 28, 2023 | 11:47 am
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NEGATIVE IMPACT
Advanced Micro Devices is trading lower amid reports of the U.S. adopting a stricter stance over China's AI ambitions.
The stricter U.S. stance on China's AI ambitions and the update of export controls on AI chips could limit AMD's market in China. This could negatively impact the company's revenues and profitability.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Nvidia Corp is trading lower amid reports of the U.S. adopting a stricter stance over China's AI ambitions. The company's GPUs are being smuggled into China due to high demand.
The stricter U.S. stance on China's AI ambitions and the update of export controls on AI chips could limit Nvidia's market in China. This could negatively impact the company's revenues and profitability.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
VanEck Semiconductor ETF is trading lower amid reports of the U.S. adopting a stricter stance over China's AI ambitions.
The stricter U.S. stance on China's AI ambitions and the update of export controls on AI chips could limit the market for the companies included in the VanEck Semiconductor ETF. This could negatively impact the ETF's performance.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
IShares Semiconductor ETF is trading lower amid reports of the U.S. adopting a stricter stance over China's AI ambitions.
The stricter U.S. stance on China's AI ambitions and the update of export controls on AI chips could limit the market for the companies included in the IShares Semiconductor ETF. This could negatively impact the ETF's performance.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70