Pony AI stock falls as TuSimple controversy and Chinese EV price cuts weigh on investors.

Pony AI's stock is falling due to concerns over autonomous-vehicle data sharing with China and a slowdown in the EV industry there. Tensions between the US and China, as well as the impact of Chinese EV companies slashing prices, are also contributing factors. The global automotive industry is facing significant pressures, which could continue to affect Pony AI's stock price in the short term.

Nvidia's first-quarter earnings call provided insights into the company's financial health amidst the backdrop of US export controls on chips targeting China. Despite these restrictions, Nvidia reported $44.06 billion in revenue, surpassing Wall Street's expectations of $43.32 billion. The stock was up nearly 5% after trading hours, indicating investor confidence in the company's position as an AI leader.

The export controls on H20 chips have significantly impacted Nvidia, resulting in a $4.5 billion write-down and an anticipated $8 billion revenue loss for the next quarter. CEO Jensen Huang emphasized the importance of the Chinese market, which has effectively been closed to US industry due to these restrictions. Huang criticized the export controls, stating that they should strengthen US platforms rather than drive AI talent to rivals.

While Nvidia's core segments, including data centers, remained strong, the loss of business in China is a significant concern. The company reported $39.1 billion in revenue in its data centers segment for the first quarter, a 73% year-over-year increase. However, Huang acknowledged the importance of the Chinese market, stating that it is the second-largest AI market and home to the world's largest population of AI researchers.

Huang's criticisms of the export controls were contained to that issue, as he praised President Trump's policies. He celebrated the US's deal with Saudi Arabia for a $600 billion AI infrastructure project and the removal of the Biden-era "AI Diffusion Rule." Huang also hinted at Nvidia's plans to explore other markets, noting his upcoming tour of Europe to discuss AI infrastructure with heads of state.

The global automotive industry is facing significant pressures, including tensions between the US and China, as well as the impact of Chinese EV companies slashing prices. These factors are contributing to the concerns over autonomous-vehicle data sharing with China and a slowdown in the EV industry there, which could continue to affect Pony AI's stock price in the short term.

References:
[1] https://www.bundle.app/en/finans/the-3-biggest-takeaways-from-nvidia's-q1-earnings-call:-china-china-china-061da3f1-998c-42ba-ae70-b97958afb225