This is not investment advice. The author has no position in any of the stocks mentioned.
NVIDIA Stock Performance Amid External Influences
NVIDIA shares have recently shown significant resilience, rising over 2.5 percent in pre-market trading. This increase can be attributed to a few pivotal factors: a dovish PPI reading from the U.S. government, indications of gradual tariff hikes under the prospective Trump administration, and a positive report from TSMC. Interestingly, the semiconductor industry in China continues to be adversely affected by stringent regulations imposed by the outgoing Biden administration.
Challenges Facing NVIDIA’s Blackwell AI Servers
Reports from yesterday suggested that NVIDIA’s Blackwell AI servers are still grappling with overheating and glitching problems. As a consequence, major clients, including tech giants like Microsoft, Google, and Meta, are reportedly reducing their orders for Blackwell products.
According to insights from The Information, the issues appear linked to the way the chips connect, hinting at a potential defect within TSMC’s specialized advanced packaging technique known as Chip-on-Wafer-on-Substrate (CoWoS). However, NVIDIA had previously communicated that they had rectified the performance-related issues with Blackwell through adjustments to the photomask, which is critical for creating precise patterns on chip wafers.
Contradictory Reports on Blackwell Orders
In a twist, DigiTimes has reported that TSMC has reportedly “maintained“its orders for Blackwell chips, countering earlier information that suggested a decline in orders from NVIDIA’s key clients.
CHINA SEMICONDUCTOR ASSOCIATION: CALLS ON GLOBAL TECH INDUSTRY TO JOINTLY RESIST THE BIDEN ADMINISTRATION’S ‘TECHNOLOGICAL HEGEMONY’
CHINA SEMICONDUCTOR ASSOCIATION: CHINA HAS THE ABILITY AND CONFIDENCE TO WORK TOGETHER WITH THE GLOBAL AI INDUSTRY TO ACHIEVE INDEPENDENT…
— First Squawk (@FirstSquawk) January 14, 2025
Response from the China Semiconductor Association
The China Semiconductor Association has released a strong statement criticizing the Biden administration’s recent measures aimed at controlling AI technology diffusion. The association denounced what they perceive as American “technological hegemony”and urged the global tech community to band together against these restrictions.
Implications of U.S. Export Controls on AI Chips
As previously reported, the outgoing Biden administration has implemented stricter export controls on AI chips to curb their dissemination. These new regulations mandate that companies adhere to specific trust and safety standards, or risk limitations on their ability to procure advanced AI chips.
NVIDIA has condemned these restrictions, asserting that they will “stifle innovation and undermine America’s global technology leadership.”The company expressed concerns that such regulations would negatively affect the U.S. economy, hinder progress, and advantage international competitors.
For more insights and imagery regarding this situation, check the source.
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