Nvidia Corp (NASDAQ:NVDA) continued to bask in the glory of its upbeat second-quarter results last week courtesy of the artificial intelligence frenzy.
Meanwhile, during her China tour this week, U.S. Commerce Secretary Gina Raimondo kept the market wondering with her mixed comments, especially when U.S.-China relations took a rough turn due to the U.S. semiconductor embargo. U.S.’s exemptions on the ban partly salvaged things.
Also Read: NVIDIA, Chipmakers Brace For Impact As US Mulls New Chip Export Restrictions To China: Could This End AI Stock Rally?
On the one hand, Raimondo warned against zero tolerance on national security while acknowledging how the U.S. aspired for a robust Chinese economy.
Nvidia has a high exposure to China due to the fact that China and Hong Kong contributed about 25% or $7.1 billion to the chipmaker’s total sales in fiscal year 2022. An additional $8.5 billion in sales came from Taiwan, which is not subject to similar export restrictions but is nonetheless caught in the middle of the escalating tensions between the United States and China.
Chinese commerce minister Wang Wentao expressed willingness to work with Raimondo.
The challenging relations between the countries seem to weigh on companies like Apple Inc (NASDAQ:AAPL), which accounts for a significant revenue share and supply chain network.
The iPhone maker’s production shift from China for iPhones, MacBooks, and other Apple devices threatens to increase customer prices, Bloomberg reports.
Phillip Capital analysts upgraded the rating on Nvidia to Buy from Accumulate with a price target of $645, up by $205.
Price Action: NVDA shares traded higher by 1.94% at $469.23 on the last check Monday.
