Nvidia's AI chips have become a crucial element driving various sectors worldwide, leading to a surge in their stock price and accounting for 30% of the gains in the S&P 500. However, tensions between the US and China pose a challenge, as Chinese regulators are encouraging domestic companies to reduce reliance on Nvidia and use local AI chips instead. This has caused Nvidia's shares to fall, and further drops are expected as Chinese competitors gain ground. Despite attempts to bypass US export controls, the restrictions are squeezing Nvidia's revenue. If Nvidia loses its dominant position, it could have significant implications for the global economy.



Other News from Today