Nvidia stock tumbles from record high on news of possible US chip export cap, ASML's dismal earnings
Published On Oct 15, 2024, 12:32 PM
Nvidia's stock fell over 5% following reports that the Biden administration may impose caps on AI chip exports to certain countries for national security reasons. This decline comes after a two-week surge where Nvidia hit a record closing price propelled by high demand for its AI chips. The drop was exacerbated by disappointing earnings from ASML, a key supplier to the semiconductor industry. While strong demand for AI chips persists, concerns about potential government regulations and a future slowdown in AI spending add uncertainty for investors.
Stock Forecasts
NVDA
Negative
Nvidia's stock is experiencing significant volatility due to regulatory concerns and adverse earnings reports in the semiconductor sector. While the current demand for AI chips is strong, potential government intervention and a predicted drop in AI spending could weigh on future performance. Given these challenges, a cautious outlook is warranted.
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