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RECAP: AI & CHIPS
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RECAP: AI & CHIPS

AI & Chip Update! Impact of Trade Wars

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InvestAnswers
Apr 19, 2025
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Today’s Nuggets

  • Manufacturing Index Continues to Tank

  • NVDA Fear Around China Market for Chips

  • Dan Ives says Demand is Not an Issue

  • Jensen Huang in Beijing

  • Tesla Doubles Down on DOJO

  • SpaceX, PLTR and Anduril Teaming Up

  • Pelosi Holds AI


We are in a world of hurt, per the Manufacturing Index from Lizanne Saunders.

The trend on this chart continues to tank. We are in a recession, which I have talked about for months.

While many industries are experiencing a recession, some are being particularly hit hard right now, and people are concerned about their AI investments.


A lot of FUD is coming out - like this piece from Reuters - which some call the new fake news central.

NVIDIA states that the U.S. government has banned H2O chips from being shipped to China, and it anticipates a charge of up to $5.5 billion in the first quarter.

Let us dig into exactly what this is all about!


In 2024, firms like DeepSeek used NVIDIA to obtain many chips, and they are in China.

They probably got the chips through the black market in Singapore, one of the biggest markets for NVIDIA chips. If there is a will, there is a way, and money can make anything happen.


As usual, the media loves to sell fear.

They live on fear and death because

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