Huawei Just Crushed Nvidia -- $230 Billion Gone in a Flash
Warning! GuruFocus has detected 3 Warning Signs with NVDA.
It's not just a one-off product ban. It's a patternand a growing one. Between the AI Diffusion Rule from the Biden administration, capping overseas chip exports, and Trump's new semiconductor tariff investigation, Nvidia's facing a geopolitical pincer move. Even as CEO Jensen Huang touched down in Beijing last week, pledging $500 billion to scale the U.S. AI supply chain, the company is losing ground in its second-largest market. And despite Nvidia's best efforts to build China-compliant GPUs, the U.S. keeps tightening the screws.
Now the political pressure is spilling into public markets. The House Select Committee on China is demanding answers from Nvidia, while Wall Street is asking a different question: are U.S. policies pushing China to build better, faster? Bernstein's Stacy Rasgon didn't mince words: banning the H20 chips is like handing the Chinese AI market to Huawei. And based on Monday's selloff, investors seem to agree. The real risk now? America's trying to defend its leadwhile accidentally accelerating the very race it fears.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
17 minutes ago
- Yahoo
'Total Mental Collapse': Trump Ripped After 'Insane' New Ramble In Europe
President Donald Trump spent part of his weekend in Scotland reviving his old grievances against wind power, even claiming at one point that it was 'killing' Americans. During a meeting with European Commission President Ursula von der Leyen, Trump abruptly detoured from immigration to wind turbines. 'And the other thing I say to Europe: We will not allow a windmill to be built in the United States,' Trump said. 'They're killing us.' He added: 'They're killing the beauty of our scenery, our valleys, our beautiful plains ― and I'm not talking about airplanes. I'm talking about beautiful plains, beautiful areas in the United States, and you look up and you see windmills all over the place. It's a horrible thing. It's the most expensive form of energy. It's no good. They're made in China, almost all of them.' He complained that wind turbines 'rust and rot in eight years,' and then can't be 'buried' because they will harm the soil. 'The whole thing is a con job,' he said. 'It's very expensive. And in all fairness, Germany tried it and wind doesn't work.' Much of what the president said was wildly inaccurate: Germany gets more than a quarter of its energy from wind, turbines last about 30 years (not eight) according to the U.S Department of Energy, it's not the most expensive form of energy, and they're not 'almost all' made in China. Several users asked Grok, the AI tool within X, to fact-check Trump's claims on wind power. Here's a typical response: Trump, who has frequently attacked renewable energy, has a special hatred of wind power that likely began some two decades ago, when an offshore wind farm was proposed near the land that would become his golf resort in Scotland. He sued to block it, lost, and has complained about wind and other forms of renewable energy since. He mentioned that on Sunday as well. 'Today I'm playing the best course I think in the world, Turnberry ― even though I own it ― it's probably the best course in the world, right?' he said. 'And I look over the horizon and I see nine windmills... I said, 'Isn't that a shame? What a shame.'' Trump has previously taken his anti-wind stance to absurd extremes, such as in 2019, when he falsely claimed wind turbines cause cancer. 'The wind, the wind, it sounds so wonderful,' he said last year. 'The wind, the wind, the wind is, the wind is bullshit, I'll tell you.' Trump's critics called him out for his latest out-of-the-blue tirade against wind energy:
CNBC
19 minutes ago
- CNBC
CNBC Daily Open: This week's the Olympics for market watchers
Choose a front-row seat and grab your popcorn. These five days will basically be the Olympics for market watchers: And looming over all those financial and macroeconomic events is U.S. President Donald Trump's August 1 deadline for his new tariffs. As Kim Forrest, founder at Bokeh Capital, said, "What isn't happening in this week?" Here's the ideal scenario for investors. The Magnificent Seven companies reporting earnings this week and the U.S. economy secure gold at their respective events. (The Fed is expected to keep rates unchanged — whether this qualifies the central bank for a medal is up for debate). Big trading partners of the U.S., such as South Korea and India, secure a deal with the White House and join the European Union and Japan at the podium, while Beijing extends its tariff suspension with Washington. If those events happen, U.S. stocks will probably have legs clear hurdle after hurdle — and the S&P 500 can continue topping record announces a trade agreement with the European Union. Most European goods, including cars, exported to the U.S. will face a 15% tariff, Trump said Sunday. The bloc also agreed to purchase $750 billion worth of U.S. energy, he added. Samsung inks a $16.5 billion contract with Tesla. While the South Korean firm didn't disclose the counterparty in its regulatory filing, Tesla CEO Elon Musk confirmed that it will manufacture the automaker's "next-generation AI6 chip." Perfect week for the S&P 500. The broad-based index rose Friday to close at a high — its fifth record in a row last week. The Nasdaq Composite and Dow Jones Industrial Average also advanced. Asia-Pacific shares were mixed Monday. The Fed is ready to start lowering rates, Trump said. On Friday, the U.S. president said Fed Chair Jerome Powell told him "the country is doing well," which Trump took to mean "he's going to start recommending lower rates." Futures markets disagree. [PRO] Winners of Hong Kong's crypto framework. The island's bill, which takes effect Friday, formalizes the process for financial companies to issue and manage stablecoins. Two online brokerages which offer crypto trading stand to benefit, analysts said. Trump's tariff deal offers scant relief for Japan automakers as bigger threat looms Japanese automakers may have sidestepped crushing U.S. tariffs, but the reprieve may offer little comfort. Their position in the global market is being eroded by Chinese automakers even as they face persistent structural challenges domestically. Still, analysts acknowledge that Trump's finalized tariff rate brings at least one benefit: some predictability.
Bloomberg
19 minutes ago
- Bloomberg
Private Lender Flow Capital Partners Launches $125 Million Fund
Hong Kong-based credit manager Flow Capital Partners has launched a new fund with a broader Asia focus, people familiar with the matter said, adding to a list of private lenders expanding in the region. FCP has raised $125 million for its new Asia credit master fund, seeking to expand its focus from Hong Kong and China to other parts of Asia, according to the people.
