Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
Investing.com-- Shares of Chinese chipmakers surged on Tuesday after Bloomberg reported that Beijing has urged domestic firms to avoid using Nvidia’s (NASDAQ:NVDA) H20 processors in sensitive projects, potentially boosting demand for local alternatives.
Bloomberg, citing people familiar with the matter, said Chinese authorities in recent weeks told state enterprises and some private companies not to use the H20, particularly for government or national security work. The guidance also covers some Advanced Micro Devices’ (NASDAQ:AMD) AI accelerators.
Hong Kong-listed Semiconductor Manufacturing International Corp (HK:0981) shares jumped 4% on Tuesday, while Hua Hong Semiconductor (HK:1347) stock climbed 4.5%.
Shenzhen-listed NAURA Technology (SZ:002371) shares gained 2%.
The moves come as China seeks to strengthen its domestic semiconductor industry and reduce reliance on U.S. suppliers.
The H20, designed to meet U.S. export controls, has faced state media scrutiny over alleged security concerns, which Nvidia denies.