Newscasts - Nvidia would suffer from potential export ban to China, expert says
26/02/2025 20:42
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_ugn99ius&referenceId=tag:reuters.com,2025:newsml_RW466326022025RP1_930&pageId=Newscasts Source: 'Reuters - Business videos' Description: Ben McMillan, chief investment officer and co-founder of IDX Advisors, said potential extreme measures under the Trump administration -- such as further restrictions on the quantity and types of Nvidia chips that can be exported to China -- would be a "real concern" for the AI powerhouse. Short Link: https://refini.tv/3QzIour Video Transcript: So, when you look at the potential for China and specifically restrictions on NVIDIA’s earnings and top line, China accounts for roughly 17% of NVIDIA’s revenue, so it's very meaningful. So, it's probably on par with what we could see from a potential risk vector perspective as it relates to demand. When you look at China's export bans for the US export bans for example, there's still a lot of the so-called banned NVIDIA chips making their way into China through third party sellers, through black markets. So, there is a very real leakage problem. Yes, the US could, you know, bring down the hammer on that, but the point to be made is that it's not as quite as simple as just saying, alright, there's going to be a ban in place going forward. I think the bigger concern is that if A, it does get more extreme, you might see China start to reduce demand and pivot to internally source chips or again, just something out of what we saw with DeepSeek where they just figure out how to do more with the lower-tier NVIDIA which aren't banned. So, I think China restrictions is a very real concern going forward, on par with the potential retrenchment and demand. And it’s kind of part and parcel with what we saw with the DeepSeek issues a couple of months ago.