US greenlights NVIDIA chip sales to China
The US decision to allow NVIDIA to sell chips to China removes a major geopolitical headwind, driving the stock to new all-time highs.
The argument
During the US-China summit, the US government permitted NVIDIA to resume chip sales to China. The hosts noted this provides an immediate growth catalyst for NVIDIA, which had previously been restricted by export controls.
The thesis, stress-tested
✓ What validates it
- ✓NVIDIA reporting surging China-based revenue in upcoming quarterly earnings reports
▸ Risks discussed
- ▸Potential for future regulatory or export control reversals
- ▸Geopolitical tensions between the US and China remaining high
Hear it yourself
"But, Trump postponed it because he wanted the Iran war to kind of wrap up or progress a more favorable position to Donald Trump. Maybe he got a little bit of that, but really not a lot. And so, president Xi, China, actually does have a lot of leverage because Trump feels some urgency to get some deals done ahead of the mid midterms. Yeah. And and president Xi doesn't have any of that pressure. Trump brought an entire techno corporate posse, though, with him. Right? Like, Jensen was there. Elon Musk was there. Yeah. He Tim Apple was there. Tim Apple. Yeah. There was there was, like, 12 industry executives that Trump and and, I mean, China, gee, they respond to Elon."
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