Nvidia (NVDA) is reportedly developing new Blackwell AI chips for the Chinese market, sending the company’s shares higher on Monday afternoon following the report, according to Reuters.
Patrick Moorhead, founder, CEO and chief strategist at Moor Insights & Strategy, appears on Market Domination Overtime to discuss his outlook for the semiconductor giant.
Moorhead said he was “not surprised” by the move, noting that it “makes sense” for Nvidia. He explained that full-spec Nvidia chips are “easily plucked” and imported into China, so the Commerce Department is likely seeking “less-spec” alternatives that the Chinese military cannot use.
As for the recent rebound in semiconductor stocks in the wake of political pressure, Moorhead said “whatever administration comes out of the 2024 elections,” there will be a “response.” But he believes investors are aware that China is a major exporter of semiconductors to the US, which will boost sales for companies like Nvidia.
“The idea that AI is going to come to a screeching halt anytime soon is fiction,” he told Yahoo Finance.
For more expert insights and the latest market trends, click here to watch this entire episode of Market Domination Overtime.
This post was written by Angel Smith