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Nvidia Drops After U.S. Prohibits Sales of Some Its Products to China

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Justin Sullivan

Nvidia (NASDAQ:NVDA) fell 6.6% in after hours trading after the company warned that U.S. restrictions on exports of some its products to China may hurt sales.

Nvidia disclose late Wednesday that the company was informed on Friday that that the U.S. has imposed a new license requirement for any future export to China (including Hong Kong) and Russia of the company’s A100 and forthcoming H100 integrated circuits, according to an 8-K filing.

Nvidia (NVDA) said that its outlook its fiscal third quarter, which included $400 million in potential sales to China, may be subject to the new license requirement if customers don’t want to purchase the company’s alternative product offerings or if the U.S. doesn’t grant licenses in a timely manner or denies licenses to significant customers.

The U.S. government “indicated that the new license requirement will address the risk that the covered products may be used in, or diverted to, a ‘military end use’ or ‘military end user’ in China and Russia,” Nvidia said in the filing.

Nvidia (NVDA) warned that the new license requirement may impact the company’s ability to complete its development of H100 in a “timely manner” or support existing customers of A100 and may require the Nvidia (NVDA) to transition certain operations out of China.

Advanced Micro Devices (NASDAQ:AMD) also warned that it received a similar note from the U.S. government, though it doesn’t see a material impact, according to a Bloomberg report, which cited an AMD statement. AMD fell 3.8% in after hours trading on Wednesday.

“At the time, we do not believe that shipments of MI100 integrated circuits are impacted by the new requirements,” according to the statement.

The Nvidia China disclosure comes after a Reuters report last month that the Biden Administration is going over new sanctions to stop sending certain chip equipment tools to China to make advanced semiconductors. The Commerce Department is trying to figure out how to ban exports of tools that are sent to factories for Semiconductor Manufacturing International Corp. (OTCQX:SMICY) or SMIC, to prevent them from making semiconductors at 14 nanometer node and smaller.

In December, it was reported that the Biden administration was evaluating imposing tougher sanctions on SMIC (OTCQX:SMICY), China’s largest chipmaker, which have limited the ability of chip equipment companies to sell inside the country, including Applied Materials (AMAT), KLA Corp. (KLAC) and Lam Research (LRCX).

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Original Article: seekingalpha.com

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Hot Stocks: Travel Stocks Fall; AMEH, FREY Rise on Upgrades; SHC Drops; XPEV Sets 52-week Low

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The major U.S. equity averages dropped on Wednesday following the announcement of the latest interest rate increase from the Federal Reserve. Worries that the Fed would push the economy into recession led to a 1.7% drop in the S&P 500.

Amid this decline, travel stocks were particularly hard hit. With investors concerned about demand in a shaky economic environment, American Airlines (AAL), United Airlines (UAL), Delta Air Lines (DAL), Carnival (CCL) and Royal Caribbean Cruises (RCL) all lost ground.

Sotera Health (SHC) was another standout decliner, adding to recent weakness as analysts responded to a recent legal setback. Meanwhile, selling pressure among Chinese EV stocks sent XPeng (XPEV) to a fresh 52-week low.

Looking to the upside, Apollo Medical Holdings (AMEH) and FREYR Battery (NYSE:FREY) both climbed on separate positive analyst comments.

Sector In Focus

As the Federal Reserve raised rates again and signaled that rate hikes would likely continue into 2023, fears about the global economy put pressure on travel stocks.

The slide included big-name airlines. American Airlines (AAL) dropped more than 5%, while United Airlines (UAL) and Delta Air Lines (DAL) each fell more than 4%.

Cruise operators were also among the notable losers. Carnival (CCL) posted a decline of nearly 7%. Royal Caribbean Cruises (RCL) was also weak, sliding by almost 6%.

Standout Gainer

A bullish analyst take encouraged buying in Apollo Medical Holdings (AMEH). Shares jumped almost 7% after William Blair initiated coverage on the healthcare management company with an Outperform rating.

AMEH finished Wednesday’s trading at $41.71, an advance of $2.57 on the day. The stock has seen significant volatility in 2022, falling from a level above $67 at the start of the year to a 52-week low of $29.52 reached in May.

Shares hit a 52-week high of $133.23 in November. Over the past 12 months, the stock has fallen nearly 54%.

Standout Decliner

Sotera Health (SHC) experienced a wave of selling after a legal setback prompted analyst skepticism about the firm’s near-term future. Shares dropped 11%.

Early this week, shares dropped after an Illinois jury found that the sterilization service provider’s Sterigenics unit was liable amid claims related to alleged carcinogenic emissions from one of its facilities. The company was ordered to pay $363M.

In response to the jury decision, JPMorgan downgraded its rating on SHC to Underweight from Overweight. “With 700+ individual lawsuits remaining, we see risk skewed to the downside relative to our coverage universe,” JPMorgan analysts, led by Casey Woodring, stated in a note.

SHC dropped 88 cents to reach $7.32. The slide added to a selloff that took place earlier this week as the jury award was first announced. The stock has now fallen 61% over the past month.

Notable New High

A positive analyst comment sent FREYR Battery (FREY) higher by 17%, with the stock reaching its highest level since coming public through a SPAC deal in mid-2021.

Morgan Stanley called the maker of rechargeable lithium-ion batteries for electric vehicles its top overall pick in the sector. In making the call, analyst Adam Jonas highlighted data points like binding offtake agreements and equipment orders.

FREY closed the session at $15.39, a rally of $2.25. During the day, shares reached an intraday 52-week high of $15.95. Overall, the stock has rallied off a 52-week low of $6.42 reached in late June.

Notable New Low

XPeng (XPEV) dropped to a new 52-week low, dragged down by a general retreat in China-based electric vehicle stocks. Shares of XPEV fell 12% on the day.

XPEV dropped $1.84 to end the session at $14.09. The stock also touched an intraday 52-week low of $13.92. The retreat extended a slide that has marked the past few months. Shares have fallen 60% since their closing price on June 24.

Wednesday’s decline took place in the context of a general sector retreat. Nio (NIO) fell about 10%, while Li Auto (LI) dropped 9%.

To see more of the Wall Street’s best- and worst-performing stocks, turn to Seeking Alpha’s On The Move section.

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Original Source: seekingalpha.com

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Aberdeen Income Credit Strategies Fund Goes Ex-dividend Tomorrow

Daniel

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Original Source: seekingalpha.com

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Hives Treatment Developer Third Harmonic Prices Upsized $185M IPO

Daniel

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Mikko Lemola

Hives treatment developer Third Harmonic Bio (THRD) has priced its upsized $185M initial public offering.

The biotech company said it now plans to offer 10.9M shares at $17 per share. Underwriters will be granted a 30-day option to buy up to 1.64M additional shares.

Morgan Stanley, Jefferies and Cowen are serving as joint bookrunners, with LifeSci Capital acting as co-manager.

Based in Cambridge, Mass., Third Harmonic’s lead product, THB001, is a KIT inhibitor being developed as a possible treatment for chronic uticaria, also known as hives.

The deal was upsized from an earlier proposal this month that had the company offering 9M shares priced between $16 and $18, which would have raised approximately $153M if priced at the midpoint.

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Source Here: seekingalpha.com

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