Nvidia stock falls as China's Huawei reportedly readies AI chip after Trump's export ban

Nvidia (NVDA) banal fell arsenic overmuch arsenic 2% successful aboriginal trading Monday pursuing a study that Chinese tech elephantine Huawei is readying a caller precocious AI spot successful the aftermath of President Trump's export prohibition connected Nvidia chips to China.

The Wall Street Journal reported Monday, citing unnamed sources, that Huawei has approached immoderate Chinese tech companies astir investigating a caller AI spot called the Ascend 910D, which it hopes volition beryllium much almighty than Nvidia's H100 AI chips. The 910D chips are successors to Huawei's 910B and 910C chips and are inactive successful an aboriginal signifier of development.

The Wall Street Journal besides said Huawei is acceptable to vessel much than 800,000 Ascend 910B and 910C chips to customers, including state-owned telecommunications carriers and AI developers specified arsenic TikTok genitor ByteDance.

Read much astir Nvidias banal moves and today's marketplace action.

Nvidia banal spiraled aft the chipmaker disclosed successful a regulatory filing this period that the US authorities had efficaciously banned exports of its H20 chips made specifically for the Chinese marketplace to comply with ever-tightening US commercialized rules. The institution said it would grounds a $5.5 cardinal nonaccomplishment from the argumentation change, with JPMorgan analysts estimating the prohibition would shave up to $16 cardinal from Nvidia's gross this year.

China accounted for $17 billion, oregon 13%, of Nvidia's gross successful its fiscal twelvemonth 2025, Bernstein noted earlier this month. DA Davidson expert Gil Luria estimates that stock could beryllium higher, telling Yahoo Finance successful an email that arsenic overmuch arsenic 40% of Nvidia's gross comes from China owed to spot smuggling.

Nvidia banal dropped past week aft Reuters reported that Huawei's 910C chips are acceptable to statesman shipping arsenic soon arsenic May and are reportedly competitory with Nvidia's H100 chips. Those Nvidia chips were banned from merchantability to China successful 2022 and are 2 iterations down Nvidia's latest Blackwell chips.

Nvidia banal is down much than 17% successful 2025, arsenic the starring AI spot banal has suffered from capitalist scrutiny implicit AI spending from Big Tech giants and Trump's commercialized war.

Earlier this month, the US authorities said it is probing Nvidia implicit the usage of its AI chips successful China.

Meanwhile, CEO Jensen Huang visited China and met with commercialized officials. The institution is simultaneously looking to grow its home manufacturing footprint, pledging $500 cardinal to the US AI proviso concatenation buildout.