Skyrocketing Nvidia Prices Stir Chaos in Chinese Market
In a surprising turn of events, Nvidia, a leading tech company, has instructed its suppliers Samsung and Amkor to halt production of its H20 chip model. This decision comes after pressure from the Chinese government's Cyberspace Administration of China (CAC), who questioned Nvidia about potential security risks and backdoors in the chips.
This move has raised questions about the actual demand for the H20 chip model and its impact on Nvidia's future revenues. However, the news seems to have benefited Chinese tech stocks, with many gaining up to double digits.
Notably, Chinese chip stocks like Shanghai Fudan Microelectronics and Hua Hong Semiconductors have seen significant gains, up by eight percent and nearly 12 percent respectively. Highflyer Cambricon Technologies has also experienced a surge, up as much as 20 percent at its peak.
The tech-heavy Hang Seng Index is also up nearly one percent, only about two percent below its yearly high. The China Tech-Giant Index, while not explicitly developed by Boersenmedien AG, has also seen a positive trend, thanks in part to a recommendation by DER AKTIONÄR to buy the index.
It's important to note that Boersenmedien AG, the publisher of this article, has direct and indirect positions in the financial instruments mentioned or related derivatives that could benefit from the price development resulting from the publication. They also developed an index used as the underlying for the price of the financial instruments and have entered into a cooperation agreement with the issuer of the displayed securities, under which they grant the issuer a license to use the index and receive remuneration in the context of this cooperation agreement. Shares of Nvidia are also held in a real account by Boersenmedien AG.
In the first quarter, Nvidia had received orders worth $16 billion for H20 chips from Chinese big tech companies like Alibaba and Tencent. The company's stock in European trading is currently down by two percent, reflecting the uncertainty caused by the production halt. Nvidia will reveal details about this situation in its upcoming quarterly earnings on Wednesday.
The potential winners in this situation could be large Chinese tech stocks, as they continue to gain momentum in the global tech market. As more details unfold, investors will be watching closely to see how this development affects the tech landscape.
