Market-wide panic over Nvidia-related news intensified.
Nvidia founder Jensen Huang announced that he would resign from all his positions at the company following a recent affair scandal, bidding farewell to the company after 33 years.
Meanwhile, several investment banks lowered their price targets for Nvidia today, citing the potentially far-reaching negative effects of Huang’s departure.
Short sellers generally believe that more than 20% of Nvidia’s computing-power revenue actually comes from Chinese companies. If the U.S. government tightens restrictions on re-exports, Nvidia’s revenue will take a hit.
This negative sentiment also weighed on cloud provider Nebius, which reported earnings tonight. Although its third-quarter revenue surged 571% year over year, the company plans to spend $40 billion to $45 billion on expansion next year. The market is concerned that growth will slow and that financing may not keep pace with spending.
Reuters also reported that Chinese AI companies are rushing to rent Nvidia computing power overseas, while traders in gray markets are stockpiling supplies. This reflects how the market is positioning in advance for tighter restrictions in response to the Huang incident, which would affect the re-export of all chips and graphics cards.
Hopefully, the market won’t face any more black swan events.
$NVDA $NBIS
Nvidia founder Jensen Huang announced that he would resign from all his positions at the company following a recent affair scandal, bidding farewell to the company after 33 years.
Meanwhile, several investment banks lowered their price targets for Nvidia today, citing the potentially far-reaching negative effects of Huang’s departure.
Short sellers generally believe that more than 20% of Nvidia’s computing-power revenue actually comes from Chinese companies. If the U.S. government tightens restrictions on re-exports, Nvidia’s revenue will take a hit.
This negative sentiment also weighed on cloud provider Nebius, which reported earnings tonight. Although its third-quarter revenue surged 571% year over year, the company plans to spend $40 billion to $45 billion on expansion next year. The market is concerned that growth will slow and that financing may not keep pace with spending.
Reuters also reported that Chinese AI companies are rushing to rent Nvidia computing power overseas, while traders in gray markets are stockpiling supplies. This reflects how the market is positioning in advance for tighter restrictions in response to the Huang incident, which would affect the re-export of all chips and graphics cards.
Hopefully, the market won’t face any more black swan events.
$NVDA $NBIS
