NVIDIA is reportedly developing a new Blackwell AI chip for the Chinese market, According to Reuters. The company’s shares traded higher Monday afternoon following the report.
Patrick Moorhead, Founder, CEO and Principal Strategist of Moor Insights & Strategy, joins Market Domination Overtime to discuss his perspective on the semiconductor giant.
Moorhead said he was “not surprised” by the move, noting that it “makes sense” for Nvidia. He explained that since Nvidia’s full-featured chips are “easy to bring” and import into China, the Commerce Department is likely looking for a “non-full-featured” alternative that the Chinese military can’t use.
Speaking of the recent rally in semiconductor stocks following political pressure, Moorhead notes that “no matter which administration” takes power as a result of the 2024 election, “there will be a reaction.” However, given that China is a major source of chips to the U.S., he believes investors understand that companies like Nvidia will see a boost in sales.
“The idea that AI will stop anytime soon is just a fantasy,” he tells Yahoo Finance.
For more expert insights and the latest market moves, click here to watch the full episode of Market Domination Overtime.
This post was written by Angel Smith
