© NVIDIA/Lemon squeezer
It was a rude awakening that awaited Nvidia this morning. While the company recently rose to the top of global market capitalization ahead of Microsoft and Apple, a recent statement from Donald Trump changed everything in the space of 24 hours.
Giving an interview to Bloomberg, the statements of the American presidential candidate caused the stock of the graphics card manufacturer to lose no less than 6.62%, currently at the top of its game for its graphics solutions. artificial intelligence.
What's going on between the United States, Taiwan and China ?
© Pexels/Karolina Grabowska
We must not forget that since the beginnings of Nvidia, its history has been closely linked to Taiwan, particularly for its partnership with the < em>Taiwan Semiconductor Manufacturing Company.
Taiwan is a crucial strategic ally for the graphics card maker, with the country being the undisputed leader in semiconductor production in the world. However, we must not forget that the country has tense relations with China, the latter not wishing to recognize Taiwan as a sovereign state. Thus, the Middle Kingdom intensified its displays of military force around the island, notably through military exercises and aerial incursions.
Protecting their own economic interests , the United States militarily supports Taiwan and its independence from China, while avoiding direct conflict. You begin to see where the exuberant character was going in his interview ?
But what did the former president say again?
Donald Trump © Wikimedia Commons
200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000Probably galvanized by a recent assassination attempt which he survived on Saturday July 13, Trump wanted to recall that he « respected enormously »< /em> the Taiwanese people, before recalling that he had monopolized the entire American semiconductor business. Next comes the presidential candidate's most problematic statement:
“ I think Taiwan should pay for our defense. Taiwan gives us nothing. Taiwan is 9,500 miles from us, and 68 miles from China. China could just bomb it (Taiwan Editor’s note). Taiwan took our semiconductor business. They are extremely rich.”
Why these statements have such an impact on the situation Nvidia stock market ?
© Lemon squeezer
Nvidia is totally dependent on Taiwanese semiconductor production, and Donald Trump through his statements has just proven that he was not necessarily in favor of continue to help the country militarily without financial remuneration.
Suffice to say that if the candidate is elected in the next presidential elections, the situation for the largest semiconductor producer in the world and by association Nvidia is quite uncertain. Rising to $117.99, Nvidia's stock lost 6.62% of its market value today. The manufacturer therefore lost the equivalent of 192 billion dollars in a single day. Enough to harm the economy of this society, which remember, is American.
- Nvidia's stock has just lost 6.62% of its value to $117.99
- In question, a declaration by the American presidential candidate Donald Trump who shows himself to be uncooperative in continuing to help Taiwan militarily, except in return for payment
- Thus , that's the equivalent of $192 billion that was lost to Nvidia in the space of 24 hours
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