Sunday, December 10, 2023

Washington immediately halted Nvidia’s exports to China

Washington has decided to immediately implement the ban on the export of artificial intelligence, or AI microchips, that went into effect in mid-October. Initially, these measures will be applied for 30 days. But the immediate launch forced NVIDIA to stop shipping to China its A100, A800, H100, H800, and L40S models.

In a communication sent to the US Securities and Exchange Commission, or SEC, Nvidia indicated that it was informed by the United States government about the licensing requirements of the standard applicable to a series of high-performance computer products designed or marketed for data centers, specifying that “it happens quickly.” “These licensing requirements were originally scheduled to become effective after a 30-day period, as previously described in the company’s current report on form filed with the SEC on October 17, 2023,” said the company.

Despite the sharp blow to the brakes, Nvidia indicated that it could have a significant short-term impact on financial results.

According to the head of the US Department of Commerce, Gina Raimondo, the purpose of strengthening the controls is to make it difficult for China to access the chips that will be key to the development of the field of artificial intelligence (AI) and computing. Advances in these sectors can be used to increase the technological capabilities of the Chinese Army.

However, this is a serious setback for companies like Nvidia, which consider China a big customer for their products.

What do the analysts say?

According to Tipranks, Nvidia has a review of 38 analysts, divided into 37 buys and 1 hold. The average price target is $645.53, with a high forecast of $1,100 and a low forecast of $560. The average price target represents a 54.51% change from Wednesday’s close.

New Street analyst Pierre Ferragu rates the company a buy with a price target of $635.

Goldman Sachs analyst Toshiya Hari also rates it a buy with a price target of $605.

Washington Immediately Halted Nvidia'S Exports To China

NVIDIA stock fell to $410.68 by Wednesday’s close. The 70-time moving average is above the weekly candles, the RSI fell to 41 points, and the MACD lines crossed below the zero level.

Medium-term support is at $403.13. Meanwhile, the Ei indicators are mostly down.

World Nation News Desk
World Nation News Desk
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