NVIDIA's stock price opened about 2% lower, correlating with a general decline in technology stocks, particularly the Nasdaq Composite. A significant factor is a new bipartisan bill aimed at monitoring AI chip sales to prevent smuggling to China. This development follows NVIDIA's experience of a $5.5 billion write-down linked to export controls on its chips. Analysts have suggested that if hyperscalers reduce data center expenditures drastically, NVIDIA may face steep revenue declines, particularly if sales to China are significantly curtailed.
NVIDIA's stock opened down 2%, reflecting a broader tech sell-off and the potential revenue risks from a new bipartisan bill targeting AI chip sales to China.
The bipartisan bill aims to impose stricter tracking on AI chips sold abroad, particularly to prevent smuggling into China, putting additional pressure on NVIDIA's earnings.
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