Global technology stocks are treading on shaky ground despite last week’s rally, as chip makers signal more trouble may be ahead.
Browsing: Nvidia
The US’s new restrictions on Nvidia selling advanced chips to Chinese customers threatens to deal a heavy blow to the country’s technological development.
The US beefed up its effort to cut off the flow of advanced technology to China by instructing Nvidia and AMD to stop sending their flagship AI chips there.
The announcement signals a major escalation of the US crackdown on China’s technological capabilities as tensions bubble over the fate of Taiwan.
Graphics chip designer Nvidia forecast a sharp drop in revenue in the current quarter on the back of a weaker gaming industry.
Nvidia is one of the worst-performing semiconductor stocks this year, though the shares are hardly in the bargain basement bin.
Mounting concern over semiconductor demand is sending shudders through Asia’s high-tech exporters, which historically serve as a bellwether for the international economy.
Even in an industry famous for its roller-coaster cycles, chip makers are bracing for a particularly severe shift in coming months.
Gaming companies are facing a slowdown in demand for videogames from pandemic highs, raising doubts about their ability to weather a downturn.
Nvidia warned its second quarter revenue would drop by 19% on weakness in its gaming business, sending the chip designer’s shares tumbling.