NVIDIA, Chipmakers Brace For Impact As US Mulls New Chip Export Restrictions To China: Could This End AI Stock Rally?
Portfolio Pulse from Piero Cingari
The US government is considering new restrictions on the export of AI chips to China, which could impact Nvidia and other chipmakers. The ban could prevent these companies from shipping their products to China without a license. This news has led to a decline in the shares of US chipmakers, including Nvidia, Advanced Micro Devices, Marvell Technology, and ON Semiconductor. The VanEck Semiconductor ETF, Global X Robotics & Artificial Intelligence ETF, and Pacer Data and Digital Revolution ETF are also expected to see volatility. The US is also considering limiting the leasing of cloud services to Chinese AI companies, which could impact Amazon and Microsoft.
June 28, 2023 | 12:55 pm
News sentiment analysis
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NEGATIVE IMPACT
Advanced Micro Devices could be impacted by the proposed US restrictions on chip exports to China.
As a chipmaker, AMD could be affected by the proposed restrictions. The company's stock has already seen a decline in premarket trading.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
Amazon could be impacted by the proposed US restrictions on leasing cloud services to Chinese AI companies.
As a large cloud service provider, Amazon could be affected by the proposed restrictions on leasing cloud services to Chinese AI companies.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
The Global X Robotics & Artificial Intelligence ETF could see volatility due to the proposed US restrictions on chip exports to China.
The ETF, which has significant exposure to semiconductors and chipmakers, could be affected by the proposed restrictions.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Marvell Technology could be impacted by the proposed US restrictions on chip exports to China.
As a chipmaker, Marvell Technology could be affected by the proposed restrictions. The company's stock has already seen a decline in premarket trading.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
Microsoft could be impacted by the proposed US restrictions on leasing cloud services to Chinese AI companies.
As a large cloud service provider, Microsoft could be affected by the proposed restrictions on leasing cloud services to Chinese AI companies.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Nvidia, with significant exposure to China, could be heavily impacted by the proposed US restrictions on chip exports.
Nvidia's significant sales in China and Hong Kong make it vulnerable to the proposed restrictions. The company's stock has already seen a decline in premarket trading.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
ON Semiconductor could be impacted by the proposed US restrictions on chip exports to China.
As a chipmaker, ON Semiconductor could be affected by the proposed restrictions. The company's stock has already seen a decline in premarket trading.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
The VanEck Semiconductor ETF could see volatility due to the proposed US restrictions on chip exports to China.
The ETF, which has significant exposure to semiconductors and chipmakers, could be affected by the proposed restrictions.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
The Pacer Data and Digital Revolution ETF could see volatility due to the proposed US restrictions on chip exports to China.
The ETF, which has significant exposure to semiconductors and chipmakers, could be affected by the proposed restrictions.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90