Don’t you love a good duke-a-roo?
Nothing… and I mean NOTHING is better than the energy and electricity of a big, showcase fight.
This is as true in the financial world as it is in the sports world.
Which is why I’m a little giddy, right now – because there’s a big showdown in the making…
In one corner – we’ve got an American giant of a company that has taken down all comers.
And in the other…
A Chinese upstart that could just shake the foundations of one of our biggest technology industries.
Like Godzilla vs. Kong…
But which one will win if push comes to shove?
Let’s take a closer look at what’s going on in the chipmaking world.
Yes…
In a stunning admission that feels like a David and Goliath reborn – Nvidia (NVDA) has acknowledged that private little chipmaking company, Huawei – as a force to be reckoned with in the global chipmaking arena.
It’s like watching Hoover come to terms with Dyson’s relentless pursuit in the vacuum cleaner market…
Only, in this case – it’s about who holds the silicon scepter and not who sucks harder.
Let’s break it down, shall we?
Nvidia – a titan in the chip industry – is now, what Hoover is (or… was) to the vacuum world, has its eyes set on a new and formidable rival: Huawei.
This Chinese tech juggernaut is racing at breakneck speeds to outsmart and outpace its competitors in the AI chip market…
And Nvidia’s concern is warranted – especially considering its belief that US chipmakers are a good decade behind in developing supply chains independent of China.
This leaves them dangling like a carrot in front of a very hungry rabbit…
Especially given international tensions.
And here’s a juicy tidbit: China isn’t just a dot on Nvidia’s sales map… it’s a whopping fifth of its entire market…
And with China’s $7 billion market ready to jump ship to a local chipmaker faster than you can say “Huawei” – Nvidia’s got more than just a little competition.
The reason this is so significant is because the US has been playing gatekeeper with its state-of-the-art chips…
The fear of them falling into the wrong hands and creating a military force straight out of a sci-fi novel – is a very REAL one.
And so, Nvidia’s bracing for a hit in its Chinese sales.
Not only that…
It may already be falling behind.
In a twist that might have made Hollywood screenwriters jealous – Huawei has blindsided the US with a home-grown smartphone processor.
This little David to the US Goliath could give two-year-old chips from Qualcomm a run for its money…
And if China’s going all in on shopping local – why would it throw dollars across the Pacific?
And just when you think it’s safe to get back in the water…
There’s even more, as it’s not just the chip market that’s feeling the heat.
Huawei, with all the subtlety of a sledgehammer – is dipping its toes into the electric vehicle industry and gearing up to revolutionize souped-up car systems.
And…
Nvidia isn’t the only big American company dealing with Huawei’s new power…
Because even Apple (AAPL) – the darling of the stock market – lost some of its shine to Chinese smartphone company – Xiaomi’s more wallet-friendly smartphones during the iPhone 15 launch.
Can you guess who’s giving them the power to stand up to Apple?
If you guessed Huawei – give yourself a gold star…
All and all – this competition may not be good for Nvidia’s shareholders – but it’s GREAT for customers.
Competition breeds innovation and leads to lower prices…
So, you can bet we’ll be keeping our eyes on this development.
That said – if there are any profit opportunities that arise from this – GorillaTrades members will be the first to know.
Because our system is based off data and numbers – there’s no guessing…
If a stock triggers our trading matrix – it’s because there’s some very real data to back it up.
We’d love to show you how it works – which is why I’m inviting you to join GorillaTrades today before the new year.
We’d love to have you on board…
But understand that there are some that would rather wing it and do all the work on their own.
Either way – we’ll be here if you need us.
Until next time…
“Always remember… Goliath was a 40 point favorite over David.” – Ralph Jordan