U.S. Officials Consider Tightening The Export Of AI Chips To China Based On Computing Power
Portfolio Pulse from Happy Mohamed
U.S. officials are considering tightening the export of AI chips to China based on computing power, according to Reuters. This could potentially impact the supply chain of tech companies and the broader market.

June 28, 2023 | 6:00 pm
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NEGATIVE IMPACT
The potential tightening of AI chip exports to China could impact the iShares China Large-Cap ETF (FXI), as it includes large Chinese tech companies that may be affected by this move.
The FXI ETF includes large Chinese tech companies that could be directly affected by the potential tightening of AI chip exports. This could lead to supply chain disruptions and impact their operations, potentially leading to a decrease in the ETF's value.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The potential tightening of AI chip exports to China could also impact the SPDR S&P 500 ETF (SPY), as it includes large U.S. tech companies that export these chips.
The SPY ETF includes large U.S. tech companies that export AI chips. If the U.S. tightens exports, these companies could see a decrease in sales and profitability, which could potentially lead to a decrease in the ETF's value.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70