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Luke Kawa

Nvidia reportedly halts H20 production after Chinese security decree clouds demand outlook

Shares of Nvidia are down in premarket trading after The Information reported that the chip designer has told two suppliers that put the finishing touches on its H20 processors — the chips it recently received licenses to sell to China once again — to suspend production work.

This news follows a report earlier this month that China’s internet regulator told major domestic tech giants like ByteDance, Alibaba, and Tencent not to purchase these chips because of data security concerns. Per The New York Times, Nvidia CEO Jensen Huang said he already made it “very clear” to Chinese regulators that their worries about backdoor access to these chips are unfounded.

The H20 has been a giant, multibillion-dollar headache for Nvidia and a flashpoint for the confusing geopolitical, commercial, and technological crosscurrents in the US-China relationship this year.

This nerfed version of Nvidia’s H100 chip was developed specifically for sale to China in response to export controls introduced by the Biden administration. Near the height of trade tensions with China in April, the Trump administration enacted fresh export restrictions on the sale of these chips. Nvidia took a $4.5 billion impairment charge in its Q1 earnings tied to this export ban, and said that its Q2 sales guidance would have been $8 billion higher if not for this change to trade policy.

After an intense public and private lobbying campaign, Nvidia (and Advanced Micro Devices) managed to receive assurances that they would be able to sell their tailor-made AI chips to China once again in mid-July. But the chip designers formally received those export licenses only after striking a novel deal to send 15% of revenues from those sales to the US government.

Nvidia had planned to sell down only its existing H20 inventory to China after it got the initial all-clear, but then reportedly elected to order more H20 chips from TSMC because demand for these processors was so hot — only to then see it seemingly doused by Chinese regulators.

Who knows what the twists and turns for the H20 mean for its successor model that’s in development, as China’s data security concerns surrounding the US chip designer’s products may be also colored by a desire to help promote domestic champion Huawei’s offerings.

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Luke Kawa
7/13/26
Meet the newly public, Bezos-backed company that’s recreating the sun and stars

General Fusion CEO Greg Twinney spoke with Sherwood News from the Nasdaq during the stock’s first day of trading.

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J. Edward Moreno

SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

Luke Kawa
7/2/26
US job growth falls far short of estimates in June; unemployment rate unexpectedly dips to 4.2%

Job growth was 57,000. Analysts foresaw job growth of 113,000; prediction markets were more optimistic, looking for job growth above 125,000 but below 150,000.

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Luke Kawa
7/1/26
Meta surges on report it’s starting a cloud business to sell excess AI compute

The story of the hyperscalers in 2026 has largely been “the beatings will continue until the cash flow outlook improves;” this could help change the story for Meta. Or not.

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Paige Oamek

Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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