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China AI Chip Ban Isn’t a Bearish Moment – It’s Bullish

Editor’s Note: The TradeSmith office will be closed today and tomorrow. Our customer service team will return on July 5. Today we are featuring a special guest issue from Andy Swan, the co-founder of Derby City Insights. Andy and his team are experts at finding out what is happening on Main Street before it becomes news on Wall Street, and he has important insight to share about a potential ban on AI chips.

Cutting my teeth at TD Ameritrade, I quicky learned that Main Street investors normally had just one move when it comes to breaking news — overreact.

It’s not a surprise since investing and finance largely leave you to your own devices and have you stumbling along… hopefully learning from your bumps and bruises to make better decisions along the way.

But some people never do.

And I saw that “overreacting mindset” go full swing when news came out last week that the United States government is considering export restrictions on AI chips to China.

For the “AI superstar” Nvidia Corp. (NVDA) and its $7.1 billion in revenue that was attributable to China and Hong Kong in 2022, folks started to panic sell their shares.


Source: Google Finance

Now, there had already been restrictions announced in October about the chips that could be shipped to China, but Nvidia found a way around it by essentially creating “workaround” chips that fell below the performance thresholds created by the United States Commerce Department.

But these new restrictions — which could be released at some point in July — could potentially even ban those “workaround” chips.

Again.

I understand the knee-jerk reaction to the news.

It’s natural.

But I have a much different view.

The minor tumble AI chipmakers like Nividia faced wasn’t a negative event — it was a light-shining moment on the tremendous power and potential of AI technology.


The Future of AI Is Still Shining Bright

Think about this.

AI is so groundbreaking…

So transformational…

And so important…

That it’s now a matter of national security.

And don’t think for a second that these restrictions are a death sentence for growth; they’re simply a sign of the rapid rise of a technology that’s upending industry norms.

AI is weaving itself into the fabric of our digital existence. From the algorithms that curate our social media timelines to the voice assistants that keep our lives organized to the predictive analytics driving business strategy — AI is omnipresent.

And as it continues to evolve, it’s paving the way for a gold rush of investment opportunities.

If this moment doesn’t spell “investment potential” in neon lights, I’m not sure what does. And of course, our team will be here to guide you to the bright spots to help you make money… while also showing you the traps to avoid.

Just like we have been with some of our most recent reports:

🧠 Video Game Industry Levels up with AI Upgrade 🧠

🧠 PATH Is a Must-Watch AI Stock 🧠

🧠 Elon Musk’s AI Vision Is Taking Shape 🧠

🧠 Nvidia’s Rally Ignites AI: 4 Other Stocks to Watch 🧠


The Bottom Line

We’ll still be following what happens with this potential ban.

But while this news event may send AI chip stock prices a bit lower for the time being, the long-term outlook is still bullish.

Extremely bullish.

It’s not the time to panic and hide in the corner.

This is era of AI… and we’ll be here to show you how to make it your own personal era of wealth.

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