Here's Why China is Urging Its Companies to Forgo Nvidia's Chips
Portfolio Pulse from Bibhu Pattnaik
China is encouraging its companies to prioritize domestic AI chips over Nvidia's to strengthen its semiconductor industry and counter U.S. sanctions. This guidance aims to support local chipmakers like Cambricon and Huawei, while Nvidia's shares fell by 3.9% following the news.
September 29, 2024 | 6:31 pm
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Nvidia's shares fell by 3.9% as China encourages firms to use domestic AI chips over Nvidia's, aiming to strengthen its semiconductor industry amid US sanctions.
The news directly impacts Nvidia as China, a significant market, is encouraged to reduce reliance on Nvidia's chips. This could lead to decreased sales in China, affecting Nvidia's revenue and stock price negatively in the short term.
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