US curbs on powerful chip exports to China hurt now, but should prove bullish in the long run

US curbs on powerful chip exports to China hurt now, but should prove bullish in the long run

NVIDIA DRIVE Thor, the company’s next-generation central computer for autonomous and assisted driving and in-car infotainment, is shown in a document image obtained September 20, 2022.

Nvidia | via Reuters

It’s understandable why the United States felt the need to act quickly to keep powerful semiconductors out of the hands of the Chinese government. It’s best to move from a position of strength before it’s too late. However, as chip stock shareholders, it still hurts. As you may recall, Club holding Nvidia (NVDA) was particularly hard hit about 2½ months ago when the Biden administration restricted exports of the most advanced US chips to China for fear they would be co-opted for military use.

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