Nvidia Corp (NASDAQ:NVDA, ETR:NVD) CEO Jensen Huang flew into Beijing on Thursday, days after the US tightened export rules on its H20 AI chips, cutting off a key product line to China. The company warned it could lose $5.5 billion in sales this quarter due to the new restrictions, which limit exports of high-bandwidth GPUs.
Nvidia has been one of the most-watched stocks on Wall Street for the past few years, with investors riding high on the AI boom and bullish price targets that once stretched as far as $200. But the story has taken a sharp turn in recent months, especially since Donald Trump returned to the Oval Office.
Nvidia CEO Jensen Huang visited China on Thursday as the executive behind high-powered artificial-intelligence chips seeks to navigate the trade war between the U.S. and China.
Nvidia's product superiority is rooted in its founder Jensen Huang's quest for excellence across the company. Jensen's strategic vision for AI culminated after more than a decade of product innovation, which is now a deep moat. Its one-year new product cadence is a strong competitive advantage and keeps completion at bay.
Nvidia CEO Jensen Huang arrived in Beijing on Thursday, said Yuyuan Tantian, a social media account associated with Chinese state broadcaster CCTV.
Markets dropped as Nvidia and the Federal Reserve headlines shook investor confidence. Nvidia is anticipating a $5.5 billion hit due to export rules on H20 AI chips to China.
The S&P 500 was down -1% as Powell took the stage at the Economic Club of Chicago today, and -2% when he left.
US lawmakers are looking into how DeepSeek may have gotten Nvidia chips despite export controls. They also accused DeepSeek of funneling American user data to the Chinese government.
Nvidia said on Wednesday that it follows the U.S. government's directions on where it can sell its AI chips "to the letter." The statement comes after Nvidia said it would incur $5.5 billion in costs related to canceled orders for the H20 chip.
Market Domination anchor Josh Lipton reports on the latest market news for April 16, 2025. Stocks fell further after Fed Chair Jerome Powell warned that tariffs could complicate things for the central bank.
The Trump administration has barred Nvidia from selling its H20 chip in China, which will cost the company billions of dollars and affect its product line. The new rules are part of Washington's efforts to limit China's semiconductor and artificial intelligence ambitions, and are seen as an escalation of the tech battle between the US and China.
Nvidia faces new export license rules for selling chips to China and other countries. The Trump administration's decision could impact Nvidia's revenue.