Nvidia faces $5.5 billion costs from U.S. export limits, shares fall over 6%

Nvidia's new export restrictions threaten its profitability as shares dip and gold prices soar, highlighting the volatility in tech stocks amid ongoing trade tensions.

Sources:
BBCCnbcReuters+1
Updated 38m ago
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Midday Trends

Nvidia's declining stocks signal broader market anxieties

Drop in Nvidia Shares
6%
Cnbc
Key Facts
  • Nvidia Shares dropped more than 6% following the announcement of new export limitations.Cnbc
  • Shares in Asia fell, reflecting broader market concerns about U.S. restrictions on chip sales to China, amplifying fears of a global trade war.Reuters

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Cause And Effect

Economic ramifications of Nvidia’s export restrictions on gold

Gold Price Record High
$3,266.65
Reuters
Forecasted Gold Price by Year-End
$3,600
Reuters
Key Facts
  • Gold Prices reached a record high of $3,266.65 per ounce, reflecting increased demand amid economic uncertainty tied to U.S.-China trade tensions.Reuters
  • Analysts at ANZ expect gold prices to rise further to $3,600 an ounce by year-end.Reuters
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Background Context

Understanding Nvidia's export dilemmas and market implications

Key Facts
  • Nvidia's AI Chips have become a central focus of U.S. export controls due to their potential military applications.BBC
  • Nvidia announced that the H20 chip now requires a permit for sales to China, significantly impacting its operations.BBC
  • Chinese Demand for the H20 chip surged due to the booming AI market, particularly from companies like Tencent and Alibaba.Reuters

Other Facts in these Reports

Japan’s Nikkei is experiencing its first decline this week due to Nvidia's export limits impacting chip-sector shares.
Japannews
China's Stance on tariffs indicates a prolonged stalemate in trade relations.
Reuters
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