Strong chip US export restrictions to China are hurting now, but should prove bullish over the long term

NVIDIA DRIVE Thor, the company’s next-generation mainframe computer for autonomous driving and assisted driving with in-vehicle infotainment, is shown in a flyer photo obtained September 20, 2022.

nvidia | via Reuters

It is understandable why the United States felt the need to act quickly to get powerful semiconductors out of the hands of the Chinese government. Better to move from a position of strength before it’s too late. However, as shareholders of chip stocks, this still hurts. As you may remember, Club Holdings nvidia (NVDA) was dealt a particularly hard blow about two and a half months ago when the Biden administration restricted the export of America’s most advanced chips to China for fear they would be used for military use.

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