Reuters has a new report out today that deserves a mention of its own. It’s connected to yesterday’s news about Jensen Huang stepping down, but from a different angle.
Reuters reviewed more than 150 Chinese procurement notices, investment plans, and contracts, and found that more than $3.2 billion worth of Chinese AI computing projects were built around restricted Nvidia H100, H200, and H800 chips. Nvidia itself said as recently as August that export controls had shut it out of China’s data center market. But IDC data shows that it still accounted for 34% of China’s AI accelerator shipments in the first half of this year.
My take is that this shows two things. First, demand for AI computing power is very real: the tighter the restrictions, the more people look for workarounds. Second, the AI stock crash triggered by Jensen Huang’s resignation may be about sentiment in the short term, but the supply-demand imbalance in the chip sector hasn’t been resolved at all in the long term. Yesterday, AI stocks plunged and Bitcoin fell below $70,000 along with them, showing that the market is now selling AI and crypto as one basket of risky assets.
As someone who has bills to pay every month, I’ll keep just one thing in mind: when the AI narrative catches a cold, crypto catches it too. Keep your positions light, and don’t use leverage at a time like this.
What do you think about AI chips—will they keep dragging the market down, or become the next big thing to speculate on?
$BTC $ETH
This is not investment advice. Make your own judgment.
Reuters reviewed more than 150 Chinese procurement notices, investment plans, and contracts, and found that more than $3.2 billion worth of Chinese AI computing projects were built around restricted Nvidia H100, H200, and H800 chips. Nvidia itself said as recently as August that export controls had shut it out of China’s data center market. But IDC data shows that it still accounted for 34% of China’s AI accelerator shipments in the first half of this year.
My take is that this shows two things. First, demand for AI computing power is very real: the tighter the restrictions, the more people look for workarounds. Second, the AI stock crash triggered by Jensen Huang’s resignation may be about sentiment in the short term, but the supply-demand imbalance in the chip sector hasn’t been resolved at all in the long term. Yesterday, AI stocks plunged and Bitcoin fell below $70,000 along with them, showing that the market is now selling AI and crypto as one basket of risky assets.
As someone who has bills to pay every month, I’ll keep just one thing in mind: when the AI narrative catches a cold, crypto catches it too. Keep your positions light, and don’t use leverage at a time like this.
What do you think about AI chips—will they keep dragging the market down, or become the next big thing to speculate on?
$BTC $ETH
This is not investment advice. Make your own judgment.