NVIDIA s first global market value stock price continues to rise! Because the US-China fighters do not give up every opportunity

The more the external environment is, the more the stock price of NVIDIA (Nvidia) is rising. Why?

Latest victory: Return to the Chinese market

Huang Renshi met with Trump's White House last week and good news came out this week. The US government approved the China permission to export NVIDIAH20 chips, allowing NVIDIA to re-enter important markets.

In April, the Trump administration tightened China's chip export controls, and NVIDIA estimated to lose $4.5 billion, and the current quarter's closing is more likely to reduce $8 billion. The situation is completely reversed now. NewStreet Research analyst Pierre Ferragu said the policy shift could increase by more than $10 billion for NVIDIA this year.

From hard to hair clamping, the white palace's temperament has changed greatly. Trump administration officials had previously held that restrictions on H20 chip sales were "not to be discussed", but after Huang Ren met with Trump last week, the policy reversed.

US Secretary of Commerce Lutnik explained on the 22nd: "We don't sell the best products to them, we don't sell the second best, or even the third best." Chinese companies can only obtain NVIDIA's "fourth best" chips, and the strategy is to allow Chinese companies to rely on American technology. David Sacks, the White House AI Tsar, said more bluntly that this is a "policy that has been thought through intensively", with the goal of preventing China from expanding its market share in the global market. He warned: "If you don't let these countries buy American technology, you're pushing them to China."

The reason for the Trump administration's hair sling is actually the risk that Huang Rensha has been warning of before: completely closure of China will only accelerate its development.

What is hidden?

But "Walker Street Journal" has a cold water: Don't be too excited too early.

First, the policy changes are extremely large. China's rare earth resolution policy has only been six months since Trump's discussion on style changes. What's even more terrifying is that Trump is preparing to pay 25% of the tax on semiconductors, and almost all NVIDIA chips are manufactured in Taiwan, and the cost is directly rising. Although Huang Renjun was good at everything, he promised to invest $500 billion in Texas and visited China frequently, and eventually became a pawn of the game between the country.

Why are NVIDIA shares rising?

Since there are so many risks, why did NVIDIA hit a new high?

Strong fundamentals: NVIDIA predicted that the second quarter would be $45 billion, a 50% increase over the same period last year.

AI demand explodes: Meta just announced that it would build many large data centers, investing tens of billions of dollars, and WeChat, Amazon, Google, and Tesla have also spent money to build AI infrastructure. These investments will eventually turn into NVIDIA chip demand.

The valuation is still reasonable: NVIDIA's P/E ratio is 33.1 times, lower than the average of 39.9 times in the past five years. The relatively not too high price-earnings ratio shows that the company's profit growth estimate can keep up with the stock price increase.

Single status: If you want to do AI, you have to buy NVIDIA chips. This almost impoverished position is more popular with investors when it is in a state of chaos.

What does a 4 trillion USD market value represent? How big is

4 trillion US dollars? It is bigger than the Canadian and Mexican stock markets combined, and it is bigger than the overall total of the entire British listed companies; the market value of the Taiwan Stock Exchange is about $2.5 trillion. NVIDIA only took four years, from 500 billion to 4 trillion US dollars, eight times higher. NVIDIA is now the biggest beneficiary of the AI revolution and the biggest bearer of the political risks of earth.

The financial report is coming soon, and other technology companies' AI spending plans are an important indicator. In an era full of variables, NVIDIA can create history, relying on the irreplaceability of the AI era. But the real test is whether the US-China struggles to continue to maintain balance, as the "Walker Street Journal" says: "The moment of celebration may be short."

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