falling knife post market

jennyjade : what happened?

104744589 OP jennyjade : no idea, shocked early in the morning

104744589 OP jennyjade : all magnificent seven dropped in post market

专业韭菜机 104744589 OP : All Sectors are dragged down by NVIDIA.

kheldarX : Nvidia Plunges After US Imposes License On H20 Chip Sales To China, Slaps Company With $5.5 Billion Charge.

104744589 OP : the stock market is ruined. No body can stop him?

Volatility Rider kheldarX : NVIDIA is required by the US government to apply for a special export license to sell AI chips to China. However the government itself is unlikely to grant NVIDIA such a license in the near term in order to restrict AI chips flow to China. NVIDIA actually had received orders for the chips from China since last year. Now NVIDIA cannot fulfill the order from China due to the need to get the export license that will likely not be granted by the government. Hence NVIDIA has to write down the unfulfilled orders as "charged" into its financial account (because making the chips incurred cost but the chips were not sold). The amount, 5.5 billion , will surely be reflected during NVIDIA's earning report in May. Hopefully NVIDIA can sell those chips (that are already physically produced and boxed) to other parties as a variant of their lineup in order to lessen the loss. Meanwhile the orders for some chips that are not fabricated yet, had to be cancelled and the incurred loss is imminent such as the cost of materials procured to produce those chips . That loss is also included in the "5.5 billion charges". It is a little bit complicated but to make it easier to understand, lets just say NVIDIA is experiencing a sort of operational loss. 5.5 billion is a big amount. Expect stock price to go down to usd 100 or maybe even lower tonight.