The stock prices of major semiconductor companies, including NVIDIA, have fallen. The backdrop includes the USA's strengthening of export regulations against China and new environmental regulations imposed by the Chinese government. The Trump administration added 80 Chinese companies to the new export blacklist citing National Security, with the leading server manufacturer 'Inspur' also affected.
NVIDIA boasts approximately $17 billion in sales in the Chinese market, with around $12 billion in the datacenter sector. However, the possibility has arisen that sales of the China-specific chip 'H20' may be hindered due to environmental constraints. Furthermore, Chinese corporate executives have expressed concerns over the overheating of AI investments, effectively dousing the investment story of NVIDIA, which has rapidly grown as an AI-related stock.
The backlash from the US-China conflict creates headwinds for NVIDIA, with experts pointing out the impact on the AI market.
The decline of NVIDIA's stock price by 6% is attributed to the resurgence of trade friction between the USA and China. The Trump administration newly added 80 Chinese companies to the export regulation list, including "Inspur," China's largest Server manufacturer and a key customer of NVIDIA. This has raised concerns that NVIDIA...