Nvidia Makes China Chips

There are never any winners in a war, whether it's military combat or a trade dispute. Trade relations between China and the US have been deteriorating since Trump initiated a trade war and Biden carried it on. Recently, China's increased focus on Taiwan has led to an escalation in tensions.

Last month, US-linked companies were banned from sending advanced microchips to China. Chip maker Nvidia stands to lose an estimated $400 million in sales for the current quarter. However, Nvidia just announced that they have made a new advanced chip for China that meets US export controls. According to Reuters, the chip is already on sale in China.

The share price popped 2% yesterday on the news. We will hear more about these issues from the company next week when they announce their latest results.