The Wall Street Journal reports that the United States is considering new restrictions on AI chip shipments to China. Yahoo Finance met with experts, analysts and strategists across the industry to determine the potential impact on chip makers such as Nvidia and the impact on the market.
eToro USA investment analyst Callie Cox discussed the impact of the report on semiconductor manufacturing stocks. “I think AI is a great story,” Cox said. “I think it’s hard to argue against the fact that AI has the potential to change the world, but these conflicts happen when you’re talking about new technologies.” she said.
Matt Maley, managing director and equity strategist at Miller Tabak, analyzed recent gains in AI stocks and chip makers such as Nvidia (NVDA) and AMD (AMD). “It’s going to be interesting,” Mayley said. “As we move into next week, not just this week, many of these agencies may start to back off a bit on this concern.”
Phil Orlando, chief equity strategist at Federated Hermes, discussed how geopolitical pressures could affect the rapid growth of AI stocks. “If that’s the direction the Biden administration is headed, could there be an air pocket? Certainly it can’t be ruled out,” Orlando said.
Yahoo Finance’s Ines Ferre also shattered the geopolitical pressure behind the report. “It’s almost becoming a matter of geopolitical economic warfare,” Ferret said, according to Baird technology strategist Ted Mortonson.
“Limiting the export of these chips is basically trying to limit a country’s economic growth, and it also tries to limit its military progress,” Ferre said. ,” he explained.
Video highlights:
00:00:03 – Brad Smith of Yahoo Finance
00:00:25 – eToro USA Investment Analyst Callie Cox
00:00:46 – Miller Tabak Managing Director and Equity Strategist Matt Maley
00:01:01 – Phil Orlando, Federated Hermes Chief Equity Strategist
00:01:20 – Ines Ferre of Yahoo Finance
video transcript
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Brad Smith: The US is considering new restrictions on AI chip shipments to China. According to a Wall Street Journal report, this raises concerns about the potential threat of advanced AI in the hands of US rivals. Shipments to China from chip makers such as Nvidia could be blocked by the Commerce Department as early as next month. Chipmaker stocks after pre-market reports.
Carrie Cox: I think this is where the rubber meets the road. I think AI is a great story. I find it hard to argue against the fact that it could change the world. But these clashes happen when we’re talking about new technology. And this is a very new trend. So I would like to tell investors that this is part of the process. This is a world where AI will figure out where it fits, and there will be ups and downs.
Matt Maley: This group has done incredible things, whether AI stocks in general or chip stocks in particular. So it’s interesting that not only this week, but as we move into next week, many of these agencies may start to pull back a bit from this concern.
Phil Orlando: That’s because there are concerns about whether the Biden administration intends to impose any restrictions on the ability of these companies to export their products. If so, the rating level may increase. You will get good profit. If that’s the direction the Biden administration wants, it could be an air pocket. Indeed, it is undeniable.
Ines Ferre: I spoke with one of Baird’s strategists, Ted Mortenson, and he basically said that this is becoming almost a geopolitical economic warfare issue. Limiting the export of these chips is essentially trying to limit a country’s economic growth, as well as limiting that country’s military progress. If China tries to limit this, this will be a kind of red line.
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