International News 17 April 2025
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Nvidia's shares have experienced a significant decline. The company is preparing for a potential loss of $5.5 billion after restrictions on AI chip exports in the US
The American semiconductor company Nvidia is set to face significant financial burdens after the US government restricted the export of its H20 chips to China. The company anticipates costs of up to $5.5 billion due to this export policy change. The US Department of Commerce has formally notified Nvidia of the requirement for an export licence for H20 chips, which will come into effect from 9 April 2025. The company has also been informed that these restrictions will be permanently enforced. The H20 chip is Nvidia's flagship product, designed to meet US regulatory standards while supporting China's AI needs, particularly in the area of inference. This export restriction is a significant challenge for Nvidia, as it now has only one high-end product permitted for sale in China following the imposition of US export controls on AI chips in 2022.
Gold Price Predicted to Jump 71% by 2025, Promising Investment Opportunity?
Gold prices are experiencing a significant increase by 2025, prompting financial institutions like Goldman Sachs to update their projections. Goldman Sachs has raised its gold price target to $3,700 per ounce by the end of 2025, with the potential for the price to reach $4,500 in a high-risk scenario. The rise in gold prices is not solely due to speculative demand, but also reflects global economic factors such as the fear of recession and geopolitical instability. By mid-April 2025, gold prices had already reached $3,200, representing a 22% increase in just four months. India, a significant gold consumer, has experienced a notable surge in the price of the precious metal. The predominant factor contributing to this surge is the apprehension of a looming recession in the US economy, compounded by escalating trade tensions between the US and China.
US oil production predicted to peak in 2027, shale boom era coming to an end
According to the US Energy Information Administration (EIA), US oil production is expected to reach its peak at 14 million barrels per day (bpd) in 2027 and remain at that level until the end of the decade, before experiencing a significant decline. The EIA's Annual Energy Outlook report projects that by 2050, production from the world's largest oil producer will shrink to around 11.3 million bpd, down from the current level of 13.7 million bpd. This suggests that the US shale boom, which has lasted nearly two decades, is approaching its end. The US Department of Energy has attributed this decline to President Joe Biden's energy policies, despite new production records being set during his tenure. The imposition of substantial tariffs on trading partners by former President Donald Trump is also a factor that has exerted pressure on shale oil producers, given the effect of these tariffs on raw material costs and the subsequent effect on oil prices.