Amid escalating trade tensions between the U.S. and China, tech bull Dan Ives thinks the time is "ticking" for trade deals as Wall Street reels from the aftermath of a tug-of-war between the world's top two economies.
What Happened: Nvidia Corp. NVDA finds itself at the center of a geopolitical tug-of-war. The U.S. has imposed new restrictions on Nvidia’s H20 chip sales to China, a move that underscores the ongoing struggle for technological supremacy, Ives said.
"The White House needs trade deals done quick with a negotiation path established with China….otherwise the markets, 10-year yield, USD, Gold, and the economy will head down their own divergent paths over the coming weeks and months ahead," said Ives.
The White House is under pressure to finalize trade agreements with China as the markets and tech industry seek clarity.
The lack of progress could lead to economic downturns, affecting the 10-year yield, USD, and gold prices, Ives added. In particular, the Wedbush analyst believes that the tech sector is particularly vulnerable, with companies like Nvidia caught in the crossfire, he said.
As the U.S. and China engage in this high-stakes trade war, the focus is on which side will concede first.
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Nvidia, which is among the leading companies in the artificial intelligence (AI) space, is seen as a strategic piece of the puzzle by the Trump administration to maintain the supremacy of the U.S. economy, Ives added.
See Also: Trump Wishes Happy Easter To All Including ‘Radical Left Lunatics’ And ‘Weak And Ineffective Judges’
Jensen Huang, CEO of Nvidia, traveled to China earlier last week to mitigate the situation, emphasizing the importance of the Chinese market for Nvidia’s global strategy.
The tech industry is bracing for a challenging earnings season, with minimal guidance expected from executives.
Why It Matters: The restrictions on Nvidia come when Chinese Vice Premier He Lifeng has been encouraging U.S. companies, including Nvidia, to expand their investments in China. This duality highlights the complex nature of U.S.-China relations, where economic interests often clash with political strategies.
In a related development, billionaire investor Mark Cuban has expressed concerns over the potential human cost of the trade war, particularly in the pharmaceutical sector. Cuban warns that rising costs could have dire consequences, emphasizing the broader impact of the trade tensions.
Meanwhile, Huang’s visit to China included meetings with key officials, reflecting Nvidia’s efforts to navigate the challenging landscape.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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