đź’» NVIDIA Surges as U.S. Eases AI Chip Export Curbs; CPI Data Signals Hawkish Fed | Tech Sector Insights
NVIDIA jumped after announcing it will resume H20 AI chip sales to China, following eased U.S. export restrictions. The move comes amid a broader rally in VGT holdings, including AMD, which hit a multi-month high. Meanwhile, hotter-than-expected CPI at 2.7% YoY reinforces the Fed’s hawkish stance.
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Tuesday, July 15
VGT [+1.1%]
Vanguard Information Technology ETF (VGT)
The U.S. Consumer Price Index (CPI) for June showed a year-over-year increase of 2.7%, surpassing the Federal Reserve's target and reinforcing a hawkish stance on interest rates amid ongoing inflation concerns. This environment may impact technology stocks like Vanguard Information Technology ETF (VGT), as higher rates could affect growth prospects in the sector. In a positive development, Nvidia announced plans to resume sales of its H20 AI chips to China following eased U.S. export restrictions, which could enhance revenue recovery for tech companies within VGT’s portfolio. Among the ETF's holdings, significant performance was noted from Nvidia, Apple, Microsoft, Advanced Micro Devices (AMD), and Broadcom, with AMD's stock surging to its highest level since October 2024 after the U.S. government eased restrictions on AI chip exports to China. Analysts have raised price targets for AMD, reflecting strong growth potential in chip sales.