NVIDIA (Nvda) CEO Jensen Huang made a high -level trip to Beijing this week after a sudden US government to block exports from the company AI H20 to China, the New York Times (Nyt)) reported.
The H20 – A NVIDIA chip specially designed to comply with previous export restrictions – had become at the heart of the Chinese company’s strategy. But the reversal of the policy sparked a planned turnover of $ 5.5 billion and a drop of almost 7% in Nvidia equity prices on Wednesday. The shares are down almost 3% on Thursday.
During his stay in Beijing, Huang met Chinese trade officials from the Chinese Council for the promotion of international trade. According to the Chinese state media, he underlined Nvidia’s commitment to the market, claiming that the company “would spare no effort” to build compliant products and “serve the nonsense Chinese market”.
Back in Washington, however, Nvidia faces a meticulous examination. The Restricted Committee of the Chamber on the Chinese Communist Party has launched an investigation into Nvidia flea sales through Asia, emphasizing the question of whether the company violated the export rules – in particular with regard to the startup of Chinese AI Deeepsek, which would have stored tens of thousands of advanced fleas.
While Wedbush Securities said it in a note Thursday morning, Nvidia and Us Tech are now “taken in the eye of this category 5 storm”. The company called for the “first shot” chip ban in what could become a long and painful trade war between the United States and China. Analysts expect technological companies to offer little advice this quarter, and Wedbush estimates that the forecasts of 2025 will be reduced from 7 to 10%.
Although short -term financial damage can be considerable, strategic risk is even higher. China brought in about $ 17 billion for Nvidia last year – more than 19% of its total income. If access to this market evaporates, the same goes for a key growth pillar.
And with Washington which showed the heat and that Beijing looks closely, the Balancing Act of Huang – between regulatory compliance and global expansion – has become much more difficult.