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Top Republican on China panel objects to resumption of Nvidia H20 chip shipments
Top Republican on China panel objects to resumption of Nvidia H20 chip shipments

Reuters

time5 days ago

  • Business
  • Reuters

Top Republican on China panel objects to resumption of Nvidia H20 chip shipments

WASHINGTON, July 18 (Reuters) - John Moolenaar, chairman of the House Select Committee on China, on Friday objected to the resumption of Nvidia H20 equivalent graphics processing unit sales to China in a letter to U.S. Commerce Secretary Howard Lutnick. "The Commerce Department made the right call in banning the H20," Moolenaar wrote. "We can't let the (Chinese Communist Party) use American chips to train AI models that will power its military, censor its people, and undercut American innovation." Shares of Nvidia (NVDA.O), opens new tab turned negative after the news regarding the artificial intelligence chip. Representatives of the Commerce Department and Nvidia did not immediately respond to requests for comment.

Veteran fund manager makes bold move on Nvidia price target
Veteran fund manager makes bold move on Nvidia price target

Yahoo

time7 days ago

  • Business
  • Yahoo

Veteran fund manager makes bold move on Nvidia price target

Veteran fund manager makes bold move on Nvidia price target originally appeared on TheStreet. Relax, people: Jensen Huang says there's nothing to worry about. The Nvidia () CEO was looking to assure the U.S. government that it did not need to be concerned about the AI-chip superpower's technology being used by the Chinese military. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰 "We don't have to worry about that because the Chinese military — no different to the American military — will not seek to build on top of each other's technology," Huang said in an interview with CNN. "They simply can't rely on it. It could, of course, be limited at any time." The U.S. government, under both the Biden and Trump administrations, has implemented and progressively tightened restrictions on the sale of advanced AI chips to clients in China, citing national security concerns. "If you just think about the number of supercomputers that are in China, built by amazing Chinese engineers that are already in operation, they don't need Nvidia's chips or American tech stacks in order to build their military," he said. He said that export controls had been counterproductive to the ultimate goal of U.S. tech leadership, and that half the world's AI researchers are in China. 'We want the American tech stack to be the global standard. ... [In] order for us to do that, we have to be in search of all the AI developers in the world,' he said. More Nvidia: Analysts revamp forecast for Nvidia-backed AI stock Nvidia stock could surge after surprising Taiwan Semi news Nvidia CEO sends blunt 7-word message on quantum computing Huang, who recently met with President Donald Trump and government and industry officials in Beijing, said Nvidia was filing applications to sell the Nvidia H20 GPU again. The H20, a less powerful version of Nvidia's Hopper architecture H100 GPU, was created to meet U.S. export-control regulations while still enabling Nvidia to maintain a presence in the Chinese market. This news was music to the ears of a lot of people in the investment community, including TheStreet Pro's Chris Versace. "This should not only remove an overhanging question as to the future of Nvidia's China business but restore revenue that was written off as lost due to government restrictions," the lead portfolio manager of TheStreet Pro portfolio said in his July 15 column. China generated $17 billion in revenue for Nvidia in 2024, roughly 13% of the company's total revenue, Versace said. In response to the news, he lifted his Nvidia price target to $200 from $185 and reiterating his One rating. "We are also thinking this is a positive step in smoothing U.S.-China trade conversations as the two countries work on a larger trade deal," he said. President Trump is slated to announce $70 billion in artificial intelligence and energy investments, Versace said, which lends additional support for the price target increase. In a related development, Versace said CoreWeave () , a key Nvidia customer, will commit as much as $6 billion for a Lancaster, Pa., 100-megawatt data center that could be expanded to 300 MW. 'We suspect there will be similar announcements from other companies as part of Trump's larger announcement, much the way we saw with the Stargate announcement in January,' he said, referring to the joint venture that plans to invest up to $500 billion in AI said these announcements should affirm expectations for AI and data center demand in the coming quarters. Connecting the dots, Versace said that would be "a positive demand driver for not only Nvidia and Marvell () shares, but also Eaton () , United Rentals () , and others." Several investment firms issued research reports on Nvidia, including Bank of America Securities, which raised its price target to $220 from $180 and affirmed a buy rating on the shares. The Department of Commerce allowing Nvidia and AMD () to resume artificial intelligence chip sales to China is an incremental positive for both companies, the firm said, according to The Fly. B of A said the move expanded the addressable opportunity in AI for U.S. chipmakers by as much as 10% and improves the U.S.'s ability to dominate the global tech stack. Piper Sandler maintained an overweight rating on Nvidia after the company said it expects to be granted licenses to resume H20 chip sales to China. During the April quarter, the company posted $4.6 billion in sales for H20 and left an additional $2.5 billion on the table due to the ban, the firm said. Piper said the estimated impact from the ban in the July quarter was around $8 billion in sales. The firm said that it suspected strong demand for these chips would have continued had the ban not been in fund manager makes bold move on Nvidia price target first appeared on TheStreet on Jul 16, 2025 This story was originally reported by TheStreet on Jul 16, 2025, where it first appeared.

Veteran fund manager makes bold move on Nvidia price target
Veteran fund manager makes bold move on Nvidia price target

Yahoo

time7 days ago

  • Business
  • Yahoo

Veteran fund manager makes bold move on Nvidia price target

Veteran fund manager makes bold move on Nvidia price target originally appeared on TheStreet. Relax, people: Jensen Huang says there's nothing to worry about. The Nvidia () CEO was looking to assure the U.S. government that it did not need to be concerned about the AI-chip superpower's technology being used by the Chinese military. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰 "We don't have to worry about that because the Chinese military — no different to the American military — will not seek to build on top of each other's technology," Huang said in an interview with CNN. "They simply can't rely on it. It could, of course, be limited at any time." The U.S. government, under both the Biden and Trump administrations, has implemented and progressively tightened restrictions on the sale of advanced AI chips to clients in China, citing national security concerns. "If you just think about the number of supercomputers that are in China, built by amazing Chinese engineers that are already in operation, they don't need Nvidia's chips or American tech stacks in order to build their military," he said. He said that export controls had been counterproductive to the ultimate goal of U.S. tech leadership, and that half the world's AI researchers are in China. 'We want the American tech stack to be the global standard. ... [In] order for us to do that, we have to be in search of all the AI developers in the world,' he said. More Nvidia: Analysts revamp forecast for Nvidia-backed AI stock Nvidia stock could surge after surprising Taiwan Semi news Nvidia CEO sends blunt 7-word message on quantum computing Huang, who recently met with President Donald Trump and government and industry officials in Beijing, said Nvidia was filing applications to sell the Nvidia H20 GPU again. The H20, a less powerful version of Nvidia's Hopper architecture H100 GPU, was created to meet U.S. export-control regulations while still enabling Nvidia to maintain a presence in the Chinese market. This news was music to the ears of a lot of people in the investment community, including TheStreet Pro's Chris Versace. "This should not only remove an overhanging question as to the future of Nvidia's China business but restore revenue that was written off as lost due to government restrictions," the lead portfolio manager of TheStreet Pro portfolio said in his July 15 column. China generated $17 billion in revenue for Nvidia in 2024, roughly 13% of the company's total revenue, Versace said. In response to the news, he lifted his Nvidia price target to $200 from $185 and reiterating his One rating. "We are also thinking this is a positive step in smoothing U.S.-China trade conversations as the two countries work on a larger trade deal," he said. President Trump is slated to announce $70 billion in artificial intelligence and energy investments, Versace said, which lends additional support for the price target increase. In a related development, Versace said CoreWeave () , a key Nvidia customer, will commit as much as $6 billion for a Lancaster, Pa., 100-megawatt data center that could be expanded to 300 MW. 'We suspect there will be similar announcements from other companies as part of Trump's larger announcement, much the way we saw with the Stargate announcement in January,' he said, referring to the joint venture that plans to invest up to $500 billion in AI said these announcements should affirm expectations for AI and data center demand in the coming quarters. Connecting the dots, Versace said that would be "a positive demand driver for not only Nvidia and Marvell () shares, but also Eaton () , United Rentals () , and others." Several investment firms issued research reports on Nvidia, including Bank of America Securities, which raised its price target to $220 from $180 and affirmed a buy rating on the shares. The Department of Commerce allowing Nvidia and AMD () to resume artificial intelligence chip sales to China is an incremental positive for both companies, the firm said, according to The Fly. B of A said the move expanded the addressable opportunity in AI for U.S. chipmakers by as much as 10% and improves the U.S.'s ability to dominate the global tech stack. Piper Sandler maintained an overweight rating on Nvidia after the company said it expects to be granted licenses to resume H20 chip sales to China. During the April quarter, the company posted $4.6 billion in sales for H20 and left an additional $2.5 billion on the table due to the ban, the firm said. Piper said the estimated impact from the ban in the July quarter was around $8 billion in sales. The firm said that it suspected strong demand for these chips would have continued had the ban not been in fund manager makes bold move on Nvidia price target first appeared on TheStreet on Jul 16, 2025 This story was originally reported by TheStreet on Jul 16, 2025, where it first appeared.

Why Jamie Dimon thinks asset prices are 'elevated': Opening Bid top takeaways
Why Jamie Dimon thinks asset prices are 'elevated': Opening Bid top takeaways

Yahoo

time15-07-2025

  • Business
  • Yahoo

Why Jamie Dimon thinks asset prices are 'elevated': Opening Bid top takeaways

Let the earnings barrage commence. JPMorgan (JPM) is out with a big earnings beat, and CEO Jamie Dimon is voicing his support for Federal Reserve Chairman Jerome Powell and the very institution President Trump and his team are attacking. "What I've seen the president say [is] he's not going to try to remove Jay Powell," Dimon told reporters on a call this morning. "I think the independence of the Fed is absolutely critical, and not just for the current Fed chairman, who I respect, Jay Powell, but the next Fed chairman." Wells Fargo (WFC) slashed its profit outlook after a weak second quarter, further cementing its status as a banking laggard. The Consumer Price Index (CPI) for June came in hotter than May's report as the first signs of Trump's tariffs appeared in the economic data. Excluding volatile food and energy prices, consumer prices rose 2.9% year over year compared to a 2.8% increase in May. Results were in line with economists' forecasts. Here is everything we touched on during Yahoo Finance's Opening Bid on Tuesday. Tune in live daily to Opening Bid at 9:30 a.m. ET. On the aforementioned reporter call, I asked Dimon why he thinks "elevated" asset prices are a "significant" risk, as outlined in his prepared remarks. "Look at it the other way around, Brian — what if they were not elevated?" he said. "I just see, you know, [asset prices] are fairly well priced in the top 10% or 15%, however you measure them. And then credit spreads are also, in my view, a little unnaturally low with all the potential exposures out there. And so the world is kind of pricing in a soft landing. And we've been in that soft landing very well." Markets pro Lauren Goodwin said on Opening Bid that she agrees with Dimon on asset values. "It's not necessarily that asset prices are unfair for the economic backdrop that we have today, but we know that there are risks on the horizon that are likely to impact the economic data and reality moving forward," she said. The Nvidia H20 China development could be good news for its manufacturing partner, Taiwan Semiconductor (TSM). Nvidia announced late Monday that it had received approval to start filing licenses to ship H20 chips, used for artificial intelligence development, to China. TSMC will report earnings on Thursday, hot on the heels of this win. By all indications, TSMC could lift its full-year revenue outlook due to strong AI chip demand. The wild card here is how bullish TSMC execs will sound for 2026 given trade uncertainty and the AI capital expenditures cycle continuing to mature. "We believe China sales impact has been in the $4-5 billion range and Nvidia has previously talked about China being a $50 billion market," Citi analyst Atif Malik wrote in a note. "While US/China has patched up recently post EDA ban removal and a rare earth magnets deal, we believe this reversal could be part of the deal too. We believe investors should take a 'wait and see' approach before adding China contribution back to their models." Bank of America's new fund manager survey, released today, noted that in the past three months, global investors have raised their allocation to the tech sector by the largest amount since March 2009. Fund managers increased their allocation from a net 1% Underweight tech in June to a net 14% Overweight, the highest since January 2025. Yet over the past three months, Apple's (AAPL) stock has underperformed Google (GOOG), Microsoft (MSFT), Meta (META), and Nvidia (NVDA) by a country mile. Shares are up a measly 3% compared to double-digit percentage gains for those other names, led by a nearly 50% advance in Nvidia. Podcast: Why the CEO of this giant sovereign wealth fund is bullish on Microsoft Clearly, Apple is being held back by concerns about its exposure to China during the Trump trade war and stalled AI efforts. Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

U.S. tariffs will hasten, not slow, China's drive for tech self-sufficiency
U.S. tariffs will hasten, not slow, China's drive for tech self-sufficiency

Yahoo

time29-04-2025

  • Business
  • Yahoo

U.S. tariffs will hasten, not slow, China's drive for tech self-sufficiency

Donald Trump's 'Liberation Day' tariffs are shocking global markets and rekindling fears of a prolonged trade war. The U.S. president may be reconsidering some of his most disruptive tariffs as he floats the possibility of a deal—but he also continues to threaten new measures on goods like semiconductors and pharmaceuticals as he tries to shake up the global trading system. How will the tariffs affect China's tech sector which—even just a month ago—was riding high on the success of DeepSeek's AI model? China has been preparing since Trump first imposed tariffs back in 2018. Beijing has long anticipated a second round with the U.S. Faced with tighter restrictions on its access to advanced technology, China has methodically built out its technology supply chains. It's not just constructing local chip plants: Beijing's measures include bolstering renewable energy capacity, building out cloud computing capabilities through national projects like East Data West Compute, and investing in lidar technology and batteries. Beijing isn't trying to out-compete U.S. innovation in AI infrastructure. Instead, it's leveraging its manufacturing expertise and doubling down on physical AI, like robotics and AI-enabled EVs. China's chip industry still lags the cutting-edge. But it's far more self-sufficient today than it was five years ago, when the U.S. first started tightening the screws on chip exports. The country's strength goes beyond hardware, as DeepSeek's open-source AI models make affordable LLMs possible. The U.S. will likely continue to constrain China's tech sector, even if Trump pulls back on his tariffs threats. Measures like the chip export controls now enjoy bipartisan support in Washington. AI companies like Alibaba, ByteDance and DeepSeek previously relied heavily on the contentious Nvidia H20 chip, until recently the most cutting-edge processor that could be legally sold in China, were vital to. A full ban will force China's Big Tech companies to rethink their chip strategy—and maybe consider alternatives, like those made by Huawei. Analysts suggest Huawei's revenue will likely see a big jump in revenue as customers turn to its AI systems instead of Nvidia's. One recent report from SemiAnalysis suggests Huawei's latest product might even surpass Nvidia's in some configurations. Export controls, targeted tariffs and industrial policy may make sense for a U.S. worried about strategic competition and a need for more resilient supply chains. And that's why China has done the same. Since 2018, companies large and small have moved manufacturing and sourcing to countries like Vietnam, Bangladesh and Thailand. But companies can't cut out China completely. As Apple CEO Tim Cook noted in 2015, it's hard to match China's combination of scale, labor skill, and infrastructure, at least in the short term. More than 80% of iPhones are still made in China. Trump's punitive tariffs don't just raise costs for consumers. They'll force U.S. Big Tech to rethink supply chain strategies that have taken decades to build. Unpredictability, not tariffs, is the real tax for global firms that rely on long-term planning and stable conditions. Each policy tweak, whether its tariffs, export bans, blacklists or exemptions, ripples through global markets. For some Chinese firms, it's translating into a cautious and risk-averse 'wait-and-see' stance, pausing U.S. business and focusing on non-U.S. business for now. Chinese companies are already quietly hedging against trade disruption: building for the domestic market first, rethinking their expansion strategies, or rerouting development and sales to friendlier jurisdictions. Tariffs also affect China's AI plans, albeit indirectly. China's AI startups serve the broader tech sector; Executives rethinking AI plans will have a downstream effect on China's AI startup ecosystem. AI, cloud computing and semiconductors aren't isolated sectors. They're built on academic, commercial and governmental collaboration across borders. Technological progress still benefits from openness, whatever the value of strategic autonomy. Making matters worse is a rising tide of anti-Chinese sentiment around the world. The conflation of ethnicity, nationality, and geopolitics has become much more common since the COVID pandemic. Rising fears about China erodes a sense of trust and safety and damages the social fabric that underpins global innovation. And it can be self-defeating, as shown by the steady return of Chinese academics, worried about prejudice, back to China. The U.S. may hope that the right mix of tariffs, subsidies and export controls can preserve its tech leadership. But instead, the continued push to cut off China's access to advanced technology is going to make it more self-sufficient out of necessity. The trade war, even if it leads to a deal, will push China to invest in its tech sector even more. The next time the U.S. tries something like the H20 chip ban, it may mean very little to the China AI ecosystem. Competition can be healthy, but doesn't need to mean collapse. The challenge for both the U.S. and China is to draw clear guardrails to support national security without shutting down collaboration entirely. Climate tech, healthcare, AI safety and open-source development could still present real possibilities for cooperative leadership. The opinions expressed in commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune. This story was originally featured on

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