Nvidia and ASML: Challenges and Opportunities in the AI Boom

25 years ago, Nvidia sparked a profound change in the technology sector with the introduction of the GeForce 256. This first graphics processing unit (GPU) laid the foundation for today's industrial revolution in artificial intelligence (AI) and has sustainably transformed both gaming and technical developments. Nvidia's statement in the investor report highlights that this development has not only transformed the entertainment landscape but also society as a whole. However, despite the positive reception in AI development, Nvidia is currently experiencing a setback in the stock market. After nearly reaching an all-time high, the stock subsequently fell, due to reports of potential export restrictions on advanced Nvidia chips to certain countries. The US government is considering limiting the sale of such chips to certain states, which could significantly impact trade. Initial discussions in the Biden administration have already led to restrictions in over 40 countries, mainly as a precautionary measure against China. Simultaneously, the Nasdaq experienced a decline of more than 1%, triggered by an unexpectedly released quarterly report from ASML. This European supplier of chip equipment forecasts a slow recovery in demand outside the AI sector, raising concerns about future bookings. In the meantime, the tension in the technology sector between the US and China is also shifting. Chinese developers are using innovative methods to access American AI chips, while Chinese authorities are demanding measures against chips from companies like Intel. In light of these developments, it remains exciting to see how trade dynamics and the global technology market will continue to evolve.