Chinese authorities have urged local companies to avoid using Nvidia's H20 processors, particularly for government-related purposes, Bloomberg News reported on Tuesday, citing people familiar with the matter.
Jensen Huang tried diplomacy to sell chips in China, but it took a last-minute deal with the White House.
President Donald Trump says he'd consider letting Nvidia sell a scaled-down version of its Blackwell chip to China. “It's possible I'd make a deal” on a “somewhat enhanced — in a negative way — Blackwell” processor, he said in a briefing with reporters.
Nvidia finds itself caught between its competition and the Trump administration.
Trump confirmed that he was charging Nvidia for a license to ship chips to China, and said that he initially asked for a 20% cut of sales. Trump said that Huang negotiated with him to get that number down to 15%.
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CNBC's Eunice Yoon joins 'Squawk Box' to report on the latest news from Beijing.
Nvidia pushed back Sunday in response to allegations from Chinese state media that its H20 artificial intelligence chips are a national security risk for China.
In the closing of the recent trading day, Nvidia (NVDA) stood at $182.74, denoting a +1.09% move from the preceding trading day.
Nvidia (NASDAQ: NVDA) remains the centerpiece of Wall Street's AI trade, and analysts see little reason for that to change heading into the company's fiscal Q2 earnings on August 27.
Nvidia remains a strong buy despite Trump's 100% semiconductor tariff threat, as TSMC's massive U.S. investments likely exempt Nvidia from penalties. Market overreactions to tariff news present buying opportunities; Nvidia's U.S. manufacturing partnerships and negotiating strength mitigate geopolitical risks. Nvidia's technological lead and dominant data center revenue justify its premium valuation and continued accumulation in my portfolio.
The market is still underestimating how large and far-reaching the artificial intelligence boom will be, analysts at Wedbush believe. The analysts reiterated their bullish stance on the sector, highlighting strong earnings from major tech names and growing enterprise adoption of AI.