Key insights
- The article suggests a bearish outlook for Nvidia due to potential loss of the Chinese market. China's apparent rejection of Nvidia chips, coupled with a potential ban on domestic firms purchasing them and the development of indigenous AI infrastructure, poses a significant threat. The development of a CUDA alternative could severely impact Nvidia's stock.
Trump traveled to Chine with a big delegation of the biggest and strongest to discuss trade.
no big details are yet known but it seems that nvidia got told.
US was like „as a token of our good will we are gonna give you access to these nvidia chips you crave“
china was like: „thanks but no thanks.. we are now building our own“
its even worse:
not only china „chose“ bot to buy chips after the ban was lifted, they pulled a reverse Hormuz and are now forbidding themselves for any chinese firm to buy nvidia:
given the strength with which China has bern pushing good AI models out, it seems the underlying infra has gotten self sufficient.
if they publish some alternative to CUDA thos would obliterate the Nvidia stock which only knew one direction so far.
what do you think?