Dan Meuser Sells NVDA As Govt Considers China Ban
More companies are about to become victims of the battle for tech supremacy between China and the U.S. Not surprisingly, it is the chip makers that are in trouble again. The U.S. government is considering a ban on selling AI chips to China starting in July.
The move is likely to affect Nvidia Corporation (NVDA:US), Advanced Micro Devices (AMD:US), and Micron (MU:US). Micron is already having a tough time dealing with China as it was called a ‘national security risk’ last month and banned from selling equipment to some of the most important domestic industries in China.
While the details of such a ban are still awaited, it is quite likely that NVDA won’t be able to sell its A800 as well as the tweaked H100 chips to China. These chips were developed to comply with export regulations after constant government pressure and it seems the company will now need a special export license to keep selling these chips.
The uncertainty and negativity surrounding the news caused NVDA stock to drop over 4.5%, falling below the $400 mark in pre-market trading. Other chip makers are also trading in the red after the news.
As already mentioned above, these bans have been under discussion by the government since last year, forcing companies to get innovative to sell their products in China, a market big enough that no company would like to lose it.
Among all this, Congressman Dan Meuser stands out because of the sale of $250,000 - $500,000 worth of NVDA stock at the end of last month when the stock closed at a price of $378.34. What makes this transaction interesting is the fact that the Republican Representative sits on the ‘US-China Working Group’ congressional caucus. The stock has seen its market value shoot up amidst all the AI hype, but this ban could very well cause that rally to reverse.
