The world was the world to use an old saying Nvidiatoward (NASDAQ: NVDA) oyster. The company called on global markets because he liked to sell his favorite, best artificial intelligence (AI) and explosive growth. However, in recent years, the United States – the leadership of the former President Joe Biden, and presented on the current President Donald Trump and set certain restrictions.
In 2022, the Bunden Administration has launched export departments that restricted the types of AI chips that can be sold to China’s main market, then gave the EI diffusion rule to further strengthen this position in the beginning of this year. The Trump Administration recently canceled the procedure, but he said he would replace it with other instructions soon. Meanwhile, NVIDIA, a few weeks ago, due to the government’s government, it could not sell previously confirmed H20 plugs in the Chinese market market, and it could not result in a billions of dollars for the company.
It is important to remember that in the last fiscal year – 26 months expired in 1525. Therefore, investors focused on the statements and plans related to the condition of Nvidia CEO Jensen Huang. And he simply gave a amazing message during the call for the last profit. Let’s take into account what you mean for stock.
Picture source: Getty Images.
Nvidia, H20 AI chip, Hopper architecture respected the leadership of the US government and won approval to export it. However, in April, the government spoke that he could not export H20 without a license. The United States has not yet given such licenses to Chip companies.
As a result, NVIDIA remained with the H20s, which could not be exported, and announced a $ 5.5 billion fee. In the company Earnings report This week, he lowered it to $ 4.5 billion as it can undo the specific H20 materials. The market share in NVIDIA in China has gradually decreased by about 50% about 95% to 50%.
Now let’s consider the amazing message on the future of the Nvidia’s future in Huang.
“China is one of the world’s largest AI markets and is a springboard to global success,” Huang said. “But today the $ 50 billion Chinese market is effectively connected to the US industry. We are investigating limited ways to compete, but Hopper is no longer an option.”
Colette Colette Colette Colette, Colette Kress, China’s AI accelerator market will be the potential loss of the potential “Our business affect our business”.
Now let’s consider what it means to Nvidia. It is true that in the scenario in the worst case, the company will lose a permanent way, and this can grow. But the two elements do not play this scenario that makes me optimistic.
First, it is important to note that Huang is generally very skilled and active. After all, quickly managing NVIDIA’s H20 management and to protect a presence in China. Thus, it is clear and the team is a priority and can find ways to restrict damage.
Second, Huang did not try to minimize the potential impact of connecting the door to the Chinese market. He examines an alarming call in a very high way and explains how much damage to us can hurt us. As it considers new rules, it can encourage the Trump leadership as it allows new rules to convert everything and perform some market to company companies such as NVIDIA.
Meanwhile, via the latest fiscal year, the company’s largest market is the largest market, the company’s largest market has earned $ 130 billion. In all other geographical areas, the companies with shipping addresses have come to significantly. Thus, although the company clarified NVIDIA to avoid sales of sales, the company still continues to lead in other areas of the world.
What does this mean for this share? In the worst case, if the scenario happens, he probably had a shareholder performance at least as soon as possible. In a bright note, I do not think that this is a situation that will destroy the long-term value of NVIDIA, given the company’s consideration into account Management in AI throughout the rest of the world. However, as noted, an optimistic solution can be found on the side of a optimistic road, which allows NVIDIA to at least one opportunity in China, and if this happens, NVIDia shares can vote.
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Adria Cimino There is no position in any of the marked shares. Motley has a position in FOOX and recommends NVIDIA. Motley Fool has a Disclosure Policy.
