Nvidia warns on $5.5B loss from China chip crackdown
You can catch Opening Bid on Apple Podcasts, Spotify, YouTube, or wherever you get your podcasts. So much for the mini relief rally in one of the world’s most popular stocks. Shares of Nvidia (NVDA) fell as much as 5% in early trading on Wednesday as the company said it would take a $5.5 billion charge as the Trump administration barred it from selling its H20 AI chip in China. The news came a day after Nvidia tossed the Trump administration a big bone in committing to spend $500 billion over four years to manufacture AI supercomputers in the US. Nvidia’s whopping charge and the subsequent negative reaction in the stock should remind investors of at least two things. One, the US and China remain far apart in a trade deal – and in the meantime, escalations along the lines of the Nvidia chip news should be expected. US Treasury Secretary Scott Bessent suggested a deal with China hasn't yet taken form in an exclusive interview with Yahoo Finance on Tuesday. Talks between the two haven’t commenced, Bessent suggested. And two, as it pertains to Nvidia, in this environment, investors should assume bad news isn’t baked into the stock price. The fact that Nvidia’s stock price is being hit on news pros say had been expected says a lot about ongoing market uncertainty amid the trade war. For full episodes of Opening Bid, listen on your favorite podcast platform or watch on our website. Yahoo Finance's Opening Bid is produced by Langston Sessoms
