ATTENTION: ai investors
NVIDIA's Breaking Point:
The $3.6 Trillion Question
AI giant caught between Chinese probe and Trump's trade war as stock breaks below $140
BREAKING ANALYSIS from AI Ticker (December 9, 2024):
The foundation of AI's meteoric rise just started to crack.
NVIDIA, the company powering virtually every major AI breakthrough this year, watched its stock slide below $140 today as an unprecedented series of events unfolded. For investors who've ridden the 190% surge this year, the next 24 hours could prove decisive.
At the center of this brewing crisis sits a $6.9 billion acquisition that changed everything - Mellanox. Chinese regulators have launched a probe into this very deal, but industry insiders suggest the timing is far from coincidental.
"This isn't just another regulatory challenge," notes Bob O'Donnell of TECHnalysis Research. "The Chinese government is trying to react against recent restrictions from the U.S., but their ability to impact the U.S. semiconductor industry continues to decrease over time."
The timing couldn't be more critical. Just days after the Biden administration announced its third round of chip restrictions targeting 140 Chinese companies, Beijing's response has been swift and calculated. Beyond the NVIDIA probe, China has banned exports of critical minerals - gallium, germanium, and antimony - essential for semiconductor manufacturing.
The stakes are staggering. NVIDIA's exposure to China amounts to $6.89 billion in quarterly revenue - roughly 15% of its total. Before U.S. restrictions, the company commanded a 90% share of China's AI chip market. Now, with Trump's inauguration weeks away and promises of 60% tariffs looming, the semiconductor giant faces its most complex challenge yet.
Jensen Huang, NVIDIA's CEO, maintains a diplomatic stance: "Whatever the new administration decides, we'll, of course, support the administration." But behind closed doors, the company is scrambling to navigate an increasingly hostile landscape. Already, NVIDIA has attempted to work around existing sanctions by developing China-specific chips that comply with U.S. export controls.
Market Impact:
• Stock down 2.5%, trading at $138.98
• 30-day decline of 4.32%
• YTD gains still impressive at 188.54%
• Trading volume suggests institutional repositioning
He called the 2020 crash, the 2022 bear market, and the 2023 bank run. Now, as Wall Street billionaires quietly sell their shares, he’s stepping forward with a critical NVDA update – and the #1 stock you should buy today instead.
The broader implications stretch far beyond NVIDIA. Chinese industry associations have issued a rare coordinated warning, urging domestic companies to avoid U.S. chips, declaring them "no longer safe." This shift could accelerate China's push toward semiconductor independence, with companies like Huawei already gaining ground.
Looking ahead, these critical factors will determine NVIDIA's trajectory:
Chinese Regulatory Action
The depth and scope of the antitrust probe could set precedent for future U.S. tech company treatment in China. Previous investigations, like Qualcomm's 2013 case, resulted in a $975 million fine.
Trump's Trade Policy
The incoming administration's promised tariffs could fundamentally alter the semiconductor supply chain, forcing NVIDIA to rethink its global manufacturing strategy.
Market Share Defense
With domestic Chinese competitors rising and export restrictions tightening, NVIDIA's dominance in the world's largest AI market faces unprecedented pressure.
The next few weeks could reshape not just NVIDIA's future, but the entire AI chip landscape. As one Wall Street analyst puts it, "This isn't about one company anymore - it's about who controls the future of AI."
For investors, the question isn't just about NVIDIA's stock price - it's about whether the company that sparked the AI revolution can maintain its leadership in an increasingly fragmented global technology market.
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Just weeks before last month’s selloff, Citadel – the most successful hedge fund in history – quietly sold 500,000 shares.
DE Shaw, which once owned over $1 billion of Nvidia stock , slashed its position by half.
The stock has since plunged nearly 10%.
What’s happening to what was once Wall Street’s favorite company?
Every billionaire on this list has sold their Nvidia shares – some in the millions…
• Philippe Laffont of Coatue Management (2,937,060 shares)
• Ken Griffin of Citadel Advisors (2,462,716 shares)
• Israel Englander of Millennium Management (720,004 shares)
• Stanley Druckenmiller of Duquesne Family Office (441,551 shares)
• John Overdeck and David Siegel of Two Sigma Investments (420,801 shares)
• David Tepper of Appaloosa Management (348,000 shares)
• Steven Cohen of Point72 Asset Management (304,505 shares)
And now that the stock is slipping once again, millions of retail investors are left to wonder:
To get the answer, I recently sat down with the 50-year Wall Street veteran who invented the indicator hedge funds use to track money flowing in and out of stocks every day. (Including NVDA.)
It involves the AI trend… over a century of market history… and a looming stock event that goes far beyond the Magnificent Seven.
I urge you to watch at least the first five minutes of our interview before market-close today. It’s 100% free when you click here.
If you currently own a single stock – NVDA or otherwise…
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