Is Nvidia Defying US Export Controls? What's Going On?
Portfolio Pulse from Anusuya Lahiri
Nvidia Corp (NASDAQ:NVDA) is projected to sell $12 billion worth of AI chips in China this year, despite U.S. export controls. The company is expected to deliver over 1 million H20 chips, designed to bypass these restrictions. This could significantly boost Nvidia's revenue, although the company is under scrutiny for potential smuggling of advanced AI chips into China. Nvidia's stock has surged over 203% in the last 12 months.
July 05, 2024 | 3:02 pm
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POSITIVE IMPACT
Investors can gain exposure to Nvidia through the iShares Core S&P 500 ETF (NYSE:IVV). Nvidia's strong performance and significant revenue from China could positively impact IVV.
Nvidia's strong performance and significant revenue from China could positively impact IVV, which includes Nvidia in its holdings.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Nvidia is expected to sell $12 billion worth of AI chips in China this year, despite U.S. export controls. The H20 chip, designed to circumvent these restrictions, is key to this growth. However, Nvidia is under scrutiny for potential smuggling of advanced AI chips into China.
The news highlights Nvidia's ability to generate significant revenue from China despite export controls, which is positive for the stock. However, scrutiny over potential smuggling could pose a risk.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Nvidia through the SPDR S&P 500 ETF (NYSE:SPY). Nvidia's strong performance and significant revenue from China could positively impact SPY.
Nvidia's strong performance and significant revenue from China could positively impact SPY, which includes Nvidia in its holdings.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50