What's Going On With Nvidia Stock Friday?
Portfolio Pulse from Anusuya Lahiri
Nvidia Corp (NASDAQ:NVDA) stock is trading lower due to the U.S. Department of Commerce's announcement of a new survey to analyze the U.S. semiconductor supply chain and national defense industrial base, with a focus on legacy chips and security risks related to China. Nvidia is already affected by the U.S. embargo on semiconductor and AI technology exports to China. The survey, mandated by the NDAA for FY 2021, aims to strengthen the supply chain and address national security concerns. NVDA shares dropped 0.47% in premarket trading.
December 22, 2023 | 12:34 pm
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Nvidia's stock is trading lower after the announcement of a U.S. survey on semiconductor supply chains, which could impact Nvidia's operations, especially considering its existing challenges with the U.S.-China technology embargo.
The announcement of the survey by the U.S. Department of Commerce directly impacts Nvidia as it is a major player in the semiconductor industry. The focus on legacy chips and the national security aspect related to China, where Nvidia has significant market interests, could lead to increased regulatory scrutiny and potential supply chain adjustments. This news is likely to be viewed negatively by investors in the short term, as evidenced by the premarket stock price decline.
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