I think Breaking Points should bring in a Semiconductor expert, stock market “expert” and economic expert next week. Seriously.
(I know I hate on Saagar a lot. It’s 90% in good fun. But I think it would be very important.)
I think China is about to (or is currently) making a big play in the semiconductor field that might dramatically affect the AI/semiconductor sector in the stock market. I base this on 5 key points:
- Semiconductor and hardware giants make up roughly 30-35% of the S&P 500.
- Nvidia is the biggest semiconductor manufacturer in the US by market value.
- China has been trying to buy Nvidia chips for years.
- China has been known to ignore US patents.
- China just banned Nvidia gaming chips.
AI investment has never been larger and I feel like China has finally found the needle that might finally pop AI bubble, just when all of these AI data centers start popping up all over the nation.
I think the perfect time for China to announce semiconductor chips are being produced in country that rival Nvidia for half the price is right before Midterms. This could literally kill the US economy by itself but I think no one is paying enough attention to it because there’s a war with Iran going on. Imagine the dot-com bubble burst, but worse.
But maybe I’m wrong. It’s possible.