Nvidia Chip Export Restrictions Impact ASML; United Airlines Offers Hopeful Outlook

Nvidia Chip Export Restrictions

• 📉 Nvidia shares are down 5.8% due to new US government restrictions on exporting its H20 chip to China.
• ⚠️ These restrictions are a permanent policy aimed at curbing China's AI ambitions and require a license for future exports.
• 💰 Nvidia warns of a $5.5 billion write-down for the current quarter due to inventory and commitments related to the H20 chip.
• 📈 Previously, Nvidia had secured $18 billion in orders for this chip, with China accounting for 13% of its total sales last fiscal year.

ASML's Uncertain Outlook

• 📉 ASML Holding NV shares are down 5% in Europe following disappointing first-quarter orders, nearly a billion euros less than expected.
• ❓ The CEO expressed uncertainty about quantifying the impact of recent tariff announcements on the semiconductor industry.
• 💬 This adds to the uncertainty surrounding the sector, with ASML counting TSMC as a major customer, whose reporting is due soon.

United Airlines' Resilient Earnings

• ✈️ United Airlines shares are up 5.7% as the carrier anticipates resilient earnings in the second quarter.
• 🎯 The company reaffirms that its 2025 outlook remains achievable.
• ⚠️ However, United Airlines also presented two earnings scenarios, warning that a recession could significantly impact its profit forecast due to the uncertain macroeconomic backdrop.

Rare Metals Miners Surge

• 🚀 Rare metals miners are experiencing a streak of gains, heading for their third consecutive day of increases.
• ⛏️ Companies like The Metals Company (TMC) and MP Materials are up, driven by government plans to allow stockpiling of critical minerals.
• 🛡️ This trend also follows President Trump's probe into tariffs on critical minerals, citing national security concerns.