The headline goes on to say "Buy the Dip" which may or may not be good advice depending on your time frame.
From Barron's June 28:
Nvidia is likely to be caught in the crossfire of new U.S. rules on exporting artificial intelligence chips to China. This could set it and other chip makers up for a multibillion-dollar hit amid escalating tensions in a critical technology Cold War.
Chip makers play a key role in developing the potentially transformational AI technology at the center of the recent market frenzy. On the downside that means companies like Nvidia (ticker: NVDA) are more vulnerable to geopolitical pressures—amid U.S. concerns over powerful AI in Chinese hands. But on the upside demand dynamics mean investors may not need to worry too much.
The Biden administration is considering fresh restrictions on selling chips used in AI to Chinese customers, part of final rules expanding measures announced last October, The Wall Street Journal reported, citing anonymous sources. It could see the Commerce Department move as soon as early July to stop shipments from Nvidia, Advanced Micro Devices (AMD), and others to China as well as other markets of concern without first obtaining a license, the report said....
....MUCH MORE
After jumping $12.44 (+3.06%) yesterday the stock is now down $15.20 (-3.63%) to $403.56 pre-market. AMD is down $3.20 (-2.90%).
