Unhedged Nvidia’s bad day
43 snips
Apr 17, 2025 
John Foley, Head of Lex and a tech enthusiast, dives into the recent plunge of Nvidia shares due to U.S. export bans on technology to China, impacting their H20 chip forecast. He sheds light on the broader implications for AI development and the geopolitical landscape affecting tech markets. The conversation also covers challenges in semiconductor regulations, market confidence, and the rise of new ventures like DeepSeek, all while keeping a humorous twist with the mention of 'Sperm Racing.'
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NVIDIA's China Sales Blocked
- NVIDIA faces a $5.5 billion revenue hit due to new US export controls blocking AI chip sales to China.
- These controls follow concerns after China's DeepSeek AI model surpassed expectations using restricted chips.
AI Controls vs Tariffs Explained
- Export controls on AI chips differ from tariffs as they focus on national security and economic competition in AI.
- The AI race resembles a new space race with geopolitical stakes between the US and China.
Tech Stocks' Long-Term Growth
- Despite recent declines, major US tech stocks remain well above pre-2016 levels.
- NVIDIA's value surged 15 times over five years due to discovering AI chip capabilities beyond gaming.