Nvidia's China Nightmare? H20 Chip Faces Backdoor Allegations in High-Stakes Trade Showdown
Warning! GuruFocus has detected 5 Warning Signs with NVDA.
Here's where things get messier. Just a few weeks ago, the U.S. agreed to lift restrictions on H20 sales to China as part of a broader deal involving rare-earth magnetsmaterials critical for everything from smartphones to fighter jets. Commerce Secretary Howard Lutnick had framed the H20 resumption as a meaningful breakthrough after bilateral talks in London, and Treasury Secretary Scott Bessent said the magnet issue was solved. But with Beijing now putting the H20 back under the microscope, it's unclear whether Nvidia has actually received the licenses it needs to ship the chips. And if China decides the H20 isn't up to pareither technically or politicallythose sales may stall before they even start.
Meanwhile, CEO Jensen Huang has been walking a tightrope. Fresh off a high-profile visit to Beijing, Huang praised China's AI momentum and national champions like DeepSeek, all while pushing back on the idea that Nvidia would ever install surveillance backdoors into its products. He called the suggestion not only false, but bad business. Still, the reality is this: Nvidia's H20, already weaker than its flagship GPUs, now faces a political test that could matter more than its specs. Investors watching the U.S.China tech standoff might want to pay close attention to what happens nextbecause this chip is turning into a geopolitical bargaining chip.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
Why Shopify Stock Is Rising Today
Key Points Investors may be responding to the fact that the E.U. said it won't increase tariffs on the U.S. just yet. But slowing job growth and uncertainty around tariffs could eventually weigh on the economy. Shopify investors should keep a close watch on the company's upcoming quarterly results. 10 stocks we like better than Shopify › Shares of the e-commerce platform company Shopify (NASDAQ: SHOP) were rebounding today after stumbling on Friday after a weaker-than-expected jobs report. Investors regained some of their optimism for the company today, as the European Union says it's delaying some retaliatory tariffs on the U.S. for six months. Shopify investors are closely watching for any positive economic news as they prepare for the company's Q2 earnings report due out on Wednesday. Shopify stock was up by more than 5% this morning and had gained 4.8% as of 11:29 a.m. ET. Some positive news ahead of Shopify's upcoming earnings report Profit growth has been slowing for Shopify, and investors will get more details on which direction it's currently headed when the company reports second-quarter results on Wednesday. In the meantime, investors were responding positively to the E.U.'s announcement that it will hold off on any retaliatory tariffs against the U.S., as it tries to strike a trade deal. Investors were spooked on Friday by a weak jobs report for June and significantly revised jobs numbers for May, which caused a sell-off among many stocks on Friday. So any news that the U.S. isn't entering a new stage of a trade war with the E.U. caused investors to respond positively. Shopify's growth is dependent on how well companies are growing in the U.S. and how many new businesses are started. So any slowdown in the economy will weigh down the company's sales and earnings. The latest job data wasn't a good sign, but with today's gains, it appears investors aren't yet sold on the idea that the U.S. economy is slowing down. Shopify investors will know more very soon Wednesday's Q2 report will prove whether investors' optimism is misplaced or not. It's certainly not time to panic about the economy, but there are significant uncertainties right now as hiring slows down and the dust settles on new tariffs. It could take months for both to work their way through the economy, which means the next few quarters will be especially important to watch for Shopify investors. Should you invest $1,000 in Shopify right now? Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Shopify wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy. Why Shopify Stock Is Rising Today was originally published by The Motley Fool
Business Wire
19 minutes ago
- Business Wire
Mike Parrish Appointed as CEO, Howden U.S. and Jim Hays as Vice Chairman, Howden Group Holdings
LONDON--(BUSINESS WIRE)--Howden, the global insurance intermediary group, today announces the appointment of Mike Parrish as Chief Executive Officer, Howden U.S., and of Jim Hays as Vice Chairman, Howden Group Holdings. Mike will build a next-generation U.S. retail broking business for clients and talent, bringing Howden's unique employee-ownership driven and client-centric model to the largest and most dynamic insurance market in the world. Jim will bring more than 40 years' U.S. insurance industry experience to the Howden Group Board. Mike is one of the industry's most successful business builders, with a proven track record of scaling highly successful U.S. operations. His appointment reflects Howden's approach to empowering the very best leaders in each territory to build great businesses by attracting exceptional talent and giving that talent the freedom to put their clients at the heart of the business. Mike spent the best part of two decades at Aon, where he built a market-leading business, before joining Marsh in 2021. He will join Howden in September, subject to the fulfilment of relevant contractual obligations. Jim is a deeply experienced U.S. insurance executive and entrepreneur who previously served as Chief Executive Officer of Hays Company, an insurance broker which he founded in 1994 and sold to Brown & Brown in 2018. He served as Vice Chair and as a member of the Board of Brown & Brown, Inc. He started Hays as a seven-person operation and oversaw more than 25 years of growth to build one of the leading independent U.S. brokers. Howden started with three people in 1994 and has become a top 10 global broker with more than 22,000 people, including nearly 6,000 employee shareholders who own 34% of the Group. It has done this by attracting entrepreneurs to build businesses across 56 countries, today managing $47 billion in premiums and providing a full-service offering across retail, specialty, and reinsurance broking, risk capital advisory, employee benefits, and underwriting and program management. Howden already has substantial operations in the U.S. where more than a quarter of its revenue is generated. It has operated in the U.S. for more than a decade through DUAL, one of the world's largest Managing General Agents, through Howden Re, one of only four global reinsurance brokers, and through many years of supporting US-domiciled clients as their wholesale broker in international markets, with more than $18bn of US premiums today. Jim Hays, Vice Chairman, Howden Group Holdings, said: 'I could not be more energized to join this incredibly exciting, deeply ambitious Group with its army of entrepreneurs dedicated to serving clients. And of course, to work with David, who is in my view one of the most visionary leaders in business today. I was privileged to count Neil Armstrong as a personal friend, so the fact that the news of Howden's further investment in the USA was first rumoured in the press on the 21st July - the day an American first walked on the Moon – was particularly apposite for me.' David Howden, CEO, Howden, said: 'From the beginning we built Howden on the principle that if we look after our people they will look after our clients. This means we hire great people and get out of their way, truly empowering them to do what's best for their clients. This is why our organic growth consistently outperforms the market. 'Mike's appointment is an incredibly important moment in our 30-year history of building a global group with an energetic and entrepreneurial culture, owned by the people who work in it. The foundation of our success has always been in finding the right leaders who are driven to build a business they can be proud of. In Mike we've found one of insurance's most outstanding leaders, with an owner's mindset and an unrivalled track-record, who wants the freedom to build a business that is an alternative home for talent and clients in the U.S. And in Jim we have one of the most accomplished entrepreneurs in the U.S., who brings a wealth of experience to the Group Board as we accelerate towards our ambitious 2030 vision. 'I am passionate about the role insurance can play in the world, facilitating growth and helping to solve some of the biggest challenges we are facing. In a consolidating market we're answering a clear desire from clients, insurers, and talent for choice by being the destination for top talent. And I am especially proud that when others in the broking market are cutting costs, we are investing to create jobs in the U.S. to provide better service to clients. We will combine the full weight of our global capabilities to deliver expertise and service with a difference in the U.S. and internationally. 'Our doors are now open. We can't wait to get started.' About Howden Howden is a global insurance intermediary group with employee ownership at its heart. Founded in 1994, it provides insurance broking, reinsurance broking and underwriting services and solutions to clients ranging from individuals to the largest multinational companies. The group operates in 56 countries across Europe, Africa, Asia, the Middle East, Latin America, the USA, Australia and New Zealand, employing 22,000 people and handling $47bn of premium on behalf of clients.
Forbes
20 minutes ago
- Forbes
China And The EU Move Forward On Green Energy Without The U.S.
Sino-European cooperation in the energy sector isn't just important for renewables, but a sign of wider geopolitical shifts. getty At the end of July, a highly anticipated summit between China and the European Union took place in Beijing. Chinese President Xi Jinping, European Commission President Ursula von der Leyen, and European Council President Antonio Costa tackled an array of issues in a tense summit. The results of the summit were largely disappointing. For Beijing, its great hope of finding an alternative set of developed economies to act as new markets and bypass U.S. tariffs while splitting the Western alliance, remained out of reach due to China's refusal to stop supporting Russia. Brussels was similarly unwilling to accommodate China on critical minerals initiatives and trade imbalance remediation. The summit was largely inconclusive. Amidst this strategic stalemate, there was one area of notable cooperation: green energy. The two sides issued a joint statement agreeing to accelerate the development and deployment of green energy technologies and reaffirmed their support for the Paris Climate Agreement, which the Trump administration has withdrawn from. For both Brussels and Beijing, the cooperation represents a shared opportunity to make an imprint on the international system while the current U.S. policies abdicate its global responsibilities, critics say. Europe gains leverage over the U.S. by signaling it has strategic autonomy and maintains a source of cheap imports vital for Europe's state-directed green energy transition. China maintains a lifeline to many advanced economies and export markets for its affordable, mass-produced green tech, such as solar panels and electric vehicles. While both sides do make gains, and this by no means represents Brussels capitulating to Beijing, China has clearly gotten the better deal. Through this deal and others like it, as the U.S. lurches towards 'climate isolationism,' distrustful of prevailing science, China is poised to increase its influence in key areas, including green energy, through its multilateral economic and renewable energy engagement. China: a Renewables Superpower? China is a self proclaimed renewables superpower and the global leader in renewable energy production, accounting for 40% of the world's renewable energy capacity and investing $818 billion in green energy in 2024. Between January and May of 2025, China installed enough wind and solar power to generate as much electricity as Indonesia or Turkey. In only the first few months of 2025, China has produced as much solar capacity as in all of 2020, demonstrating the speed of Beijing's green energy development. Its record-breaking solar and wind installations are only the tip of the iceberg. China is particularly committed to nuclear energy. Beijing has set out to become the largest nuclear energy-producing country by 2030, a goal it is on track to meet. Currently, it has 58 operable nuclear reactors, fewer than the U.S.'s 94 reactors. However, it took the U.S. forty years to create that nuclear capacity, which China has added in only 10 years. In the last 30 years, the U.S. has successfully commissioned a single nuclear power plant, which was years behind schedule and billions over budget. China's nuclear reactors are newer and more efficient than most American ones, which were mostly constructed in the 1960s and 1970s. Beijing is also a pioneer in the development of Small Modular Reactors, which are a fraction of the size of traditional reactors and can be assembled in a factory before being shipped elsewhere to begin generation. China's 'Linglong One' was the world's first operable commercial SMR, with the second being in Russia. The U.S.'s first commercial SMR is not expected to come online until 2027. Images of modern Chinese cities interspersed with green energy projects are a vital component of China's soft power. They often feature in Beijing's messaging to the global south. getty Why the U.S. Loses from Being Disengaged in Climate Policy This array of investments and accomplishments is more than just sound economic policy stemming from the self-evident rationale that cheaper energy means a stronger economy. Energy policy and high-tech energy component exports provide China with an opportunity to move up the value-added chain for exports and reshape the evolving international energy ecosystem. China is exploiting an opening that has been created as the U.S. has shown disinterest in engaging its European allies in renewable energy. Approximately $8 billion worth of climate tech projects in the U.S. have been downsized or cancelled in 2025 as China and Europe continue to expand cooperation in the field. While China has made considerable strides in green energy, it is essential to remember that China is not a green utopia. China is the world's largest producer of green energy, but it also emits more greenhouse gas than any other country in the world. China playing ball with the Europeans certainly reflects its commitment to and heavy investment in clean energy and a green transition. It also reflects Beijing's inability to unilaterally act and reshape international energy demands – meaning the U.S. both has the time and potential to prevent Chinese dominance in the energy sector. Renewable energy is also a key aspect of China's soft power abroad. China has invested in renewable energy developments in Asia, Africa, and the Americas, gaining control of key supply chains in developing countries as their demand for electricity grows. Additionally, China aims to sell 30 nuclear reactors to countries through its Belt and Road Initiative by 2030, once again expanding its global footprint through energy development. Its footprint was even growing in the EU before the summit, as Chinese electric vehicle manufacturers captured market shares in several European economies. China's ever-growing influence in the climate sector is poised to leave the U.S. in the dust so long as Washington's energy policy draws more on nostalgia than foresight. Regardless of the priorities of the Trump administration in the energy sector, advancement in green technology is critical to remain competitive with China. Beijing's supply of renewable technology has boosted its position in the global economy and on the diplomatic stage. Though the current American strategy emphasizes the utilization of its oil and gas resources, an 'all of the above' strategy must also include investment into solar, wind, and especially nuclear tech to ensure the country can compete with the Chinese juggernaut in the energy transition megatrend.
