Nvidia shares sink on China order uncertainty

The news: Nvidia shares dipped to a nearly five-month low after a Wall Street Journal article claimed the tech giant's USD5 billion ($7.9 billion) in orders to China could be cancelled over new US export controls.

The numbers: The US government's new restrictions prohibiting the export of advanced chips to China were slated for mid-November but were given immediate effect last week. The WSJ reported China's biggest AI and cloud computing companies including Alibaba, TikTok owner ByteDance and Baidu had made forward orders for 2024 delivery worth USD5 billion. Nvidia shares fell as much as 4.5% to USD392.9 on Tuesday, but recovered to USD407.8 by the daily close.

The context: According to S&P Global, there are seven stocks carrying the S&P500 in 2023: Apple, Alphabet, Meta, Microsoft, NVIDIA, Amazon and Tesla. These seven stocks have been responsible for keeping the index in the green in 2023. In mid-2023, the S&P500 was up roughly 7% for the year, but without the so-called "magnificent seven", it would have been 0.8% in the red.