NVIDIA AND THE CHINA CHALLENGE

Shareholders of Nvidia Corporation $NVDA were disappointed over the Thanksgiving holiday as renewed focus on the company's hardware export problems to China impacted share prices, but experts suggest that a broader understanding of its technology could reveal potential investment benefits. In early trading on Monday, the shares rose a marginal 0.4% to $479.54. This was after a brief rise above the $500 mark in the run-up to last week's results announcement, but which was overshadowed by concerns over a projected reduction in sales to China as a result of US regulations.

Adding to the disappointment was a recent Reuters report that the chipmaker had delayed the launch of its innovative new H20 artificial intelligence chip for China until the first quarter of next year. Clearly, China is a problem that Nvidia will not be able to overcome quickly. However, the company has allayed concerns by repeatedly stating that it expects strong demand in other regions to fully offset the anticipated hit to Chinese sales. It also says it is a matter of time before regional results are presented that effectively demonstrate an offset against the loss of the Chinese market. At the same time, the company plans to fix the manufacturing issues that led to the H20's delay.