$5.5B Rollercoaster Ride 🎢
Oh man, the whole U.S.-China thing is heating up, and guess who’s caught in the crossfire? Nvidia. Yeah, they just got a nice little note from Washington. Basically, if they want to ship those fancy H20 graphics thingamajigs over to China, they need a special golden ticket. Without it? Buh-bye, $5.5 billion, at least for quarter one! Maybe they should just keep all those graphic cards in a big ol’ warehouse, like some forgotten ’90s tech. Ha! Unsurprisingly, their stock took a nosedive – 6% down in the after-hours chaos. Should’ve strapped in!
Who’s Got the Permits?
Now, the new rule is basically sticking like that annoying song on repeat: forever and always. Nvidia mentions it covers H20 chips and anything with those insane memory specs. Why? Uncle Sam’s worried they’ll end up powering some futuristic supercomputer in China. Ah, spy vs. spy, am I right? Anyway, even if Nvidia misses some Chinese cash, they’re still rocketing in sales compared to the others. At least that’s what Bill Maurer over at SA says. Bless his optimistic soul!
Painting the Big Picture 🌌
Here’s the scoop: the H20 is like the creme de la creme chip that Nvidia’s got the thumbs-up to send to the Chinese market, all keeping in line with Biden’s playbook. China’s a juicy slice of Nvidia’s pie — 13% of their revenue, to be exact, as of January 2025. And with orders from the Middle Kingdom higher than a kite, folks are probably bracing for more U.S. rulebooks. The AI bee buzz in China is louder too, thanks to DeepSeek getting their AI mojo on cheaper than we can in the States.
Future Forecast: Cloudy with a Chance of Tariffs
Switching lanes to ASML, Christophe Fouquet, the guy in the big chair, is sort of thrown off by those trade tariffs. It’s messing with his crystal ball predictions. Yikes! But he’s still hopeful that AI will keep the train on track. Despite the rocky road, there’s some demand’s got cemented for the rest of 2023 and going into the next year. ASML’s shares took a tumble, though. Down 4% before breakfast, all thanks to their latest earnings smackdown.
And there you have it! A slice of trade war drama mixed with tech dreams and economic anxieties. It’s like watching a circus act while juggling chainsaws — thrilling but a bit terrifying!
