Nvidia became the first company to be valued at $5 trillion, and a day later it saw signs of warming trade relations between the United States and China, which could mean it could export more of its chips to China.
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A day before the tech giant's landmark valuation, U.S. Treasury Secretary Scott Bessent said he could imagine a scenario in which Nvidia's advanced Blackwell chips would be sold to China and other countries as technology improves and better chips are developed.
The meeting between Donald Trump and Xi Jinping resulted in an easing of trade tensions between the world's two largest economies. For Nvidia, this means greater opportunities to expand into the Chinese market, although the company's most advanced technologies will still be available only to US customers.
At the same time, the American chip giant Nvidia will deliver over 260,000. its most advanced artificial intelligence (AI) chips to the South Korean government, as well as to Samsung, LG and Hyundai.
Nvidia breaks valuation records. Is anyone able to buy the giant?
Nvidia's future seems bright, but at the same time full of challenges. The company must meet the growing demand for its products while balancing the interests of the US and China.
As “Dziennik Gazeta Prawna” wonders, Despite its currently unshakable position, could Nvidia be sold? Although the Nvidia takeover scenario seems unlikely, it is not technically impossible. No single private company would be able to take on the debt to cover the value of the transaction.
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In theory, a consortium of the largest American companies could handle the “Nvidia loan”, provided the interest rate would have to be approximately 5%. Then the interest would amount to USD 300 billion per year. And – as “Dziennik Gazeta Prawna” notes – in the last 12 months, the Magnificent Seven generated a total net profit of USD 551 billion. An additional problem is the fact that the largest loan in history granted by American banks is USD 100 billion.
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“Dziennik Gazeta Prawna” also analyzed the possibility of a country purchasing the technology giant. In most cases – for example, a transaction made by Germany, Japan or even China – taking out a trillion dollars. new liabilities would increase public debt to levels of 205%. GDP.
As “Dziennik Gazeta Prawna” points out, of all the unrealistic scenarios of Nvidia's takeover, the probability higher than zero can be attributed to the one in which the American government buys its largest company.
