After the news, the action of the technology company reached an all-time high of US$522.53 and has already accumulated an increase of more than 10% in 5 days. How to invest in this cear?
Nvidia: what news caused a sharp rise in the stock
The H20 model processor, the most powerful of the three China-focused chips, initially scheduled to launch in November 2023is now expected to enter full-scale production in the second quarter of 2024. However, sources close to Nvidia have revealed that the initial production volume will be limited due to the prioritization of fulfilling larger customer orders.
This strategy of adaptation to the Chinese market poses a challenge for Nvidia, since the new chips, although specifically aimed at China, could lack the necessary attractiveness for companies in the country. There has been a movement towards domestic alternatives, such as those proposed by Huawei Technologies, posing a dilemma for the American technology company.
Nvidia and Wall Street indices
The restrictions imposed by the United States government, according to Gina Raimondo, secretary of the Department of Commerce, seek to limit China’s access to advanced semiconductors that could drive advances in artificial intelligence and sophisticated computers, especially in Chinese military applications.
Against this background, Jensen Huang, CEO of Nvidia, stated at a press conference in Singapore that the company is working closely with the US government to develop products that comply with current regulations. Besideshas expressed the intention to work on creating a new set of products that fit the new restrictionsmaintaining close collaboration with government authorities.
The H20, L20 and L2 chips, although they will incorporate most of Nvidia’s latest features for AI workthey will be limited in their computing power to comply with the new established rules.
What are Cedears?
The cedars They are one of the instruments most used by investors for portfolio dollarization. They are papers that follow quotes of foreign companies in global markets and that are subscribed in pesos – also in Dollars- but the fluctuations of the dollar Cash with Settlement (CCL). The costs are the same as trading shares in the local market and an account abroad is not needed.
These are instruments that are operated locally and represent shares listed on foreign markets, such as the NYSE, Nasdaq, FTSE or the Frankfurt Stock Exchange, among others, and there are more than 200 available for investment.
The dividend issue also weighs when choosing the company. They are charged in dollars each time you pay abroad in the corresponding proportion according to the Cedears held in the wallet. Besides, Being tied to the CCL, it is a good safeguard against jumps in the exchange rate.
How to invest in Cedears
To invest in a Cedear it is necessary have an active client account that allows operating in the capital market. It is possible to add one to the one we already have in a bank or create a new one through a brokerage company, as long as it is officially listed on the market.
For Christian Reos, Research Manager at Allaria Ledesma, he believes that using Cedear allows “exposure to regions that are totally different from the Argentine economy” and highlights that “in this way a small investor can invest and diversify his portfolio.” as a great one would do.” “The attractiveness of Cedear is that with pesos you can invest in world-class companies and are protected by the dollar,” remarks Paulino Seoane, Mr. Sales & Trader at Balanz.
When choosing a Cedear lThe decision involves, as with any action, detecting which sectors are promising based on global variables and the country in which the investment is made.. When choosing a Cedear, the decision involves, as with any action, detecting which sectors are promising based on global variables and the country in which the investment is made.
On the other hand, it is important to take into account the evolution of the exchange rate, because this investment will imply a way to hedge in hard currency against exchange rate risk, which is high in our country.
Source: Ambito
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