The AI sector just received its biggest catalyst since the correction began.
Late Sunday night, the U.S. Commerce Department approved NVIDIA's H200 GPU exports to China. The market's reaction? An immediate +2.2% after-hours surge that has traders scrambling to reposition for Monday's open.
Why This Changes Everything?
Here's what most people are missing: these aren't cutting-edge chips. The H200s are 18 months behind NVIDIA's latest technology.
So why does this matter?
Because NVIDIA just unlocked a $10+ BILLION revenue opportunity while STILL maintaining their competitive moat against Chinese competitors. It's the perfect regulatory win-win.
The Technical Setup Is Picture Perfect
Current Price: $186.42 (after-hours)
Entry Zone: $183-186Target 1: $192 (+3-5%)
Target 2: $199 (+7-9%)
Stop Loss: $179 (risk management is key)
Why Smart Money Is Piling In?
Commerce Secretary Howard Lutnick is backing this move. SoftBank + NVIDIA just co-invested $1B+ into Skild AI at a $14B valuation. The entire AI infrastructure thesis is getting validated in real-time.
But here's the kicker: Fear & Greed Index sits at just 39/100. When everyone else is scared, that's when the real opportunities appear.
The Bigger Picture
This isn't just about NVIDIA. The entire semiconductor sector gets a lift:
- AMD - China chip exposure (though watch for bearish divergence)
- AVGO - Earnings this week with $152M whale positioning
- TSM - Manufacturing proxy staying strong near $300
- SMH - Pure semiconductor ETF momentum play
What This Means For Your Portfolio?
If you've been waiting for a clear entry point in AI infrastructure, this is it. The regulatory overhang just lifted. The technical setup is clean. And institutions are positioning aggressively into the close.
Pre-FOMC consolidation is healthy. Post-Fed (assuming no hawkish surprises), we could see continuation into year-end toward that SPY $700 psychological magnet.
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