AI and semiconductors stocks loses after Biden's comments and Japan's decision 📉

Sensitive to geopolitical issues and trade blockades, semiconductor companies have been losing since Japan announced it would join US sanctions against China. Downward pressure is also mounting on the stocks of AI companies like C3ai (AI.US), where we are seeing an increase in sellers after Joe Biden's comments

• Japan is following in the footsteps of the U.S. and will block exports of its highest-performing chips to the Middle Kingdom. The increasing role of political relations is dampening business sentiment, taking companies away from the Chinese market - the world's largest consumer of semiconductors. We see a pullback in the shares of AMD (AMD.US), Intel (INTC.US), Micron (MU.US) and ASML Holdings (ASML.US) and Taiwan Semiconductors (TSM.US);
• Shares of Nvidia (NVDA.US), a leading chipmaker for the gaming and AI sectors, also came under additional pressure due to comments from Alphabet (GOOGL.US). The company pointed out that its supercomputer is spending more than the company's A100 scaloengo chip;

Artificial intelligence under fire

• With the prospect of a possible 'forced development shutdown' and broader regulatory debate, shares of AI companies like c3AI are losing ground today before the market opens. A slowing AI trend could limit the revenues of semiconductor companies (Nvidia, AMD, among others) that were expected to provide powerful chips to meet the need for 'machine learning' computing power;
• Already last month, a number of well-known figures in the tech industry including Elon Musk and Apple co-founder Steve Wozniak called for a halt to the AI trend because of "profound threats to humanity." Yesterday, the topic was addressed by Joe Biden, who believes AI could be dangerous to society;
• Biden stressed the need for companies to control and be responsible for the safety of AI-based products. In his view, developers have a responsibility for AI's impact on society, the job market and national security;
• The attention of new technology analysts was recently captured by the new 4th version of Chat GPT. OpenAI has indicated that the new platform is capable of, among other things, passing the bar exam with a score in the top 10 candidates. Italy last week became the first country to ban ChatGPT due to concerns about mass data collection. The European Union is in the process of negotiating regulations.

Nvidia shares (NVDA.US), D1 interval. The powerful rebound in Nvidia shares, driven largely by the AI trend, has been halted at the 23.6 Fibonacci retracement of the upward wave that began in March 2020. An important support level may be determined by $230, set by previous price reactions (including the April 2022 downtrend gap) and the 38.2 Fibo. Source: xStation5