- CNBC’s Jim Cramer on Wednesday discussed the challenges facing China as the U.S. market for chips used in AI software expands and exports of these products to the U.S. remain banned. bottom.
- “Without these chips, China would not be able to build the kind of artificial intelligence that the West is employing,” he said.
CNBC’s Jim Cramer discussed Wednesday the challenges facing China as the U.S. market for chips used in artificial intelligence software expands.
Semiconductor company AMD announced Tuesday that new AI chips will start shipping to customers later this year, positioning itself as the strongest competitor to Nvidia, which currently dominates the market.
But the U.S. government has blocked the export of these powerful chips to China, and especially with AMD joining the competition, Chinese domestic semiconductor companies cannot keep up with U.S. production, Cramer said. thinking.
“Without these chips, China would not be able to build the kind of artificial intelligence that the West is employing,” he said.
Cramer said China has been weakened by U.S. policies that have severely hampered trade and has lagged behind Mexico and Canada in recent trade data. He believes the company will need much more stimulus than what the government is rumored to be doing to regain its dominance in the manufacturing sector.
“I think the situation is getting hopeless in China. China can’t grow, they’re lagging behind in technology, they can’t even steal high-end superchips,” Kramer said. rice field. “Other than [Secretary of Commerce] Gina Raimond, I don’t think anyone in this administration really understands the real threats facing a trapped Chinese government. ”
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Disclaimer CNBC Investing Club Charitable Trust owns shares of Nvidia.
