Investment experts sound alarm bells about new government rules that could slam chip giant NVIDIA hard. The company makes 12 percent of its cash from Malaysia where local businesses keep buying computer parts for data centers. UBS bank analysts worry these fresh restrictions might crush the tech firm's recent winning streak. American companies like Microsoft and Oracle could grab the benefits instead. The whole situation puts NVIDIA's monster profits at serious risk.
NVIDIA stock jumped a massive 45 percent from May through June after crushing earnings reports. CEO Jensen Huang traveled around the world pushing his sovereign AI vision to world leaders and investors. His global sales pitch pumped up share prices as people got excited about AI demand everywhere. The company even beat China sanctions better than anyone expected. These gains made NVIDIA the most valuable company on Earth again.
UBS experts think the new Malaysia and Thailand limits could wreck the recent tech stock party. Most of these gains came from investors paying higher prices rather than companies actually making more money. Any bumps that cause missed earnings could send stock prices tumbling fast. Malaysian firms working on American projects should stay safe from the rules. The sanctions mainly target stopping chip shipments to China or Chinese-connected deals.
NVIDIA stock jumped a massive 45 percent from May through June after crushing earnings reports. CEO Jensen Huang traveled around the world pushing his sovereign AI vision to world leaders and investors. His global sales pitch pumped up share prices as people got excited about AI demand everywhere. The company even beat China sanctions better than anyone expected. These gains made NVIDIA the most valuable company on Earth again.
UBS experts think the new Malaysia and Thailand limits could wreck the recent tech stock party. Most of these gains came from investors paying higher prices rather than companies actually making more money. Any bumps that cause missed earnings could send stock prices tumbling fast. Malaysian firms working on American projects should stay safe from the rules. The sanctions mainly target stopping chip shipments to China or Chinese-connected deals.
