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Huida’s stock price fell due to Huang Renxun’s scandal, and the market once chased AMD and Broadcom. However, analysts pointed out that the real change may be the United States tightening export controls on Chinese chips.
CEO of NVIDIAJen-Hsun Huang The scandal of an extramarital affair with suspected Chinese female spy Huang Le is spreading, which could be bad news for Huida. The stock fell more than 4% on Monday, but the market is betting its competitors will see an opportunity to profit.super micro (amd) vsbroadcom (Broadcom) rose 13.3% and 8.8%, respectively. However, MarketWatch reported that the turmoil could also lead to the United States tightening restrictions on China’s chip exports.
Brian Colello, an analyst at Morningstar, said that Huida’s market dominance makes it the number one target, but other US AI companies will also be subject to closer scrutiny and will have to strengthen their defenses against the influence of outside forces.
Seaport Research analyst Jay Goldberg said that in addition to existing regulations and the need to pay attention to the use of electronic devices when traveling to China, companies like Super Micro and Broadcom can also “start incorporating anti-sexism training” because “every company faces this risk.”
However, the sharp rise in stock prices does not mean that AMD and Broadcom have recovered the orders lost by Huida. The move reflects expectations that rivals will benefit. Neither company immediately responded to MarketWatch’s request for comment.
A major change is that the United States may take this opportunity to tighten export restrictions on China. AMD also sells MI308 chips to China, and Broadcom supplies high-end switches used in Chinese data centers. Both companies have Chinese operations.
Raymond James analyst Ed Mills noted that export restrictions are currently the top priority of the Democratic Party, which recently won the majority in both houses of Congress. Massachusetts Democratic Senator Elizabeth Warren said on Monday she has drafted a bill to prevent advanced AI chips from boosting China’s military power.
Summary FAQ
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Reports spread that Huang Renxun was having an extramarital affair with a suspected Chinese female spy, and the market interpreted this as Huida facing negative pressure. As a result, the share price fell more than 4% on Monday. This is being seen as having a dual impact on the company’s image and regulatory risks.
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Investors believe that if Huida is affected, some orders for AI chips and data centers may come to competitors. As a result, the share prices of AMD and Broadcom increased by 13.3% and 8.8%, respectively. But this is just market expectation, not a firm order.
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Analysts believe a major change is that the United States may take advantage of this opportunity to tighten export restrictions on China, as Super Micro and Broadcom also have Chinese businesses. Both the Democratic Party and Senator Warren have said they will promote a ban on the export of advanced AI chips.
