Artificial Intelligence: A New Battlefield For US-China Supremacy
Portfolio Pulse from Neil Dennis
The U.S. and China are competing closely in the field of generative artificial intelligence (GenAI), with both nations investing heavily. Microsoft, backing OpenAI, is seen as a leader in the U.S. AI industry. China, with companies like Baidu and Alibaba, is rapidly developing its AI capabilities. However, U.S. export controls on advanced semiconductors and GPUs, crucial for AI development, could hinder China's progress. These controls have impacted U.S. tech companies, including NVIDIA, AMD, and Intel, and affected the iShares U.S. Technology ETF.
March 12, 2024 | 6:08 pm
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NEGATIVE IMPACT
AMD, affected by U.S. export controls on tech crucial for AI, could see its business with China impacted, influencing its stock.
Export controls could hinder AMD's semiconductor sales to China, affecting its revenue and possibly its stock price.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
Intel, as a semiconductor manufacturer, faces potential business losses in China due to U.S. export controls, impacting its stock.
Export controls may limit Intel's ability to sell to the Chinese market, potentially negatively impacting its stock.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 85
NEGATIVE IMPACT
The iShares U.S. Technology ETF, tracking top tech and AI stocks, was impacted in 2022 by U.S. export controls, affecting its performance.
The ETF's performance was affected by the export controls impacting major U.S. tech companies, potentially leading to a decrease in its value.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 75
NEGATIVE IMPACT
NVIDIA, as a key supplier of GPUs for AI development, faces challenges due to U.S. export controls, potentially impacting its business with China.
U.S. export controls could limit NVIDIA's business opportunities in China, a significant market, potentially affecting its stock negatively.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 95
POSITIVE IMPACT
Alibaba's involvement in AI through its Cloud and the launch of Tongyi Qianwent could see positive impacts from the AI development race.
Alibaba's AI developments could attract more cloud customers and partnerships, positively influencing its stock price.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Baidu's launch of Ernie Bot positions it as a significant player in China's AI efforts, potentially benefiting from the AI development race.
Baidu's advancements in AI with Ernie Bot could enhance its market position and investor interest, positively impacting its stock.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
Microsoft, as a key backer of OpenAI, is positioned as a leader in the U.S. AI industry, potentially benefiting from the AI race.
Microsoft's involvement with OpenAI and its leading position in AI could attract more investments and partnerships, boosting its stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90