Trump's Chip Ban Hits NVIDIA – Here's Why It's a Huge Buying Opportunity
Dear Reader, My home in Florida sits just a stone’s throw away from Mar-a-Lago – also known as the Winter White House. Though I’m not a member, I've been fortunate enough to visit many times. Each time, President Trump has been a gracious host to my family, and we’ve created some wonderful memories. And let me tell you, Mar-a-Lago can be quite the scene. One time, I watched South Carolina Senator Lindsey Graham deeply involved in a conversation on the phone just a few feet away from me. Moments later, he was whisked away for dinner with the President himself. That’s the kind of place Mar-a-Lago is. Big decisions happen. Deals get done. So, it didn’t surprise me one bit when NVIDIA Corporation (NVDA) CEO Jensen Huang attended a high-powered fundraising dinner there on Friday, April 11. Nor did it surprise me when, suddenly, big news about NVIDIA started to break in the days after. In today’s Market 360, I’m going to cover the latest tariff news that’s impacting NVIDIA and why it caused a sharp drop in the stock. However, I believe this is an extreme overreaction, and I’ll explain why. Plus, I’ll discuss an even bigger piece of news that’s getting completely ignored. As you’ll find out, it’s part of a much bigger story involving the White House’s plans for reshaping the U.S. economy and taking the lead in the AI Revolution. And I’ve found the perfect way to profit... President Trump Bans NVIDIA Chips in China Yesterday, the Trump administration announced surprise export restrictions targeting NVIDIA’s semiconductor business. Specifically, these new rules ban NVIDIA’s sales of its H20 AI chips to China. NVIDIA disclosed in a regulatory filing that complying with these rules would cost the company an immediate $5.5 billion charge. Analysts have projected that the potential lost revenue could reach $10 billion over the coming quarters, mostly due to existing inventories of these specialized chips now becoming unsellable. Investors didn’t take kindly to the news. NVIDIA shares dropped nearly 10% on Wednesday, and are now down roughly 25% so far this year. However, this is a gross overreaction, folks. I want to point out that NVIDIA generated nearly $135 billion in revenue last year alone – $61 billion of that in just the past quarter. The China business? It’s a drop in the bucket. Now, some analysts are wondering if banning these specific chips might inadvertently benefit Chinese competitors, like Huawei, rather than strategically hindering China's AI ambitions. It’s a valid question, but that’s not the bigger story here. NVIDIA Is Playing Trump's Game The bigger news broke just one day earlier: NVIDIA announced a massive $500 billion initiative to bolster U.S. AI infrastructure and manufacturing capabilities. This includes plans to build two enormous supercomputer factories in Texas – the company’s first-ever supercomputer plants located entirely in the U.S. These new facilities will occupy over 1 million square feet of manufacturing space and are expected to start mass production within the next 12 to 15 months. Additionally, NVIDIA will produce and test its cutting-edge Blackwell AI chips domestically at Taiwan Semiconductor Manufacturing Company’s (TSM) new plants in Arizona. Jensen Huang highlighted that moving production to the U.S. would help strengthen NVIDIA’s supply chain, boost resiliency and better position the company to meet the exploding global demand for AI-powered computing. I don’t think it’s any coincidence that this announcement was made after Huang had dinner with the President. It’s the kind of move that fits perfectly with President Trump’s broader economic agenda. Recommended Link | | | | After President Trump's bombshell tariff announcement, millions of folks saw their wealth erased overnight. But Louis Navellier warns that the real threat to American livelihoods has nothing to do with tariffs — and could leave folks in danger long after the panic subsides. Click here to learn how to prepare for challenging conditions. |  | |
The Bottom Line I know the tariffs have caused a lot of pain in the market. I expect to see some more good news on tariffs soon. Just yesterday, Treasury Secretary Scott Bessent said he was optimistic about achieving clarity on tariffs and trade deals within the next 90 days. He said that outside of China, the White House was in “rapid motion” in setting up negotiations with 14 other major U.S. trading partners. Remember, I have gone on record saying that the ultimate goal of Trump’s trade policies is to use tariffs and economic incentives to 1) bring other countries to the negotiating table for a better deal and 2) bring manufacturing jobs and advanced technology back to American shores. If Trump and his team can pull this off, then the U.S. will be primed for significant long-term growth. Not only that, but it will be in the sole position to win the AI race against China. Huang’s recent Mar-a-Lago meeting tells me that NVIDIA is on board. They’re ready to play ball. So, don’t be rattled by short-term setbacks. Sure, losing sales in China hurts today, but NVIDIA’s vision is much bigger and longer term. Yours should be, too. NVIDIA is positioning itself at the center of America's AI-driven future. And the stock’s recent near-term weakness may be exactly the type of opportunity savvy investors dream about – a chance to buy into a monopolistic company at a temporary discount. It’s why I think the stock is a screaming buy right now. How to Profit From the Trump/AI Convergence Now, it’s clear that President Trump and his team are rewriting the rulebook. And I want you to be prepared for when the full vision of Trump’s economic policies begins to take shape. For example, one of the clearest beneficiaries of President Trump’s aggressive policies will be the explosive AI Super Boom. When Trump’s policies converge with the AI Revolution, I predict that it will be one of the most powerful opportunities of our lifetime. But, as we’ve witnessed from the past month, in order to profit, we’ll need to move fast. So, that’s why I’m inviting readers to “test drive” a powerful strategy I’ve used to quickly extract gains like… - 90.25% from Celestica, Inc. (CLS)
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