Nvidia Corp NVDA has gone from being an AI crown jewel to a geopolitical chess piece. And, it appears to be like like Wall Avenue simply received a front-row seat to a high-stakes poker recreation between Washington and Beijing.
After weeks of rigidity, the primary actual blow within the U.S.-China tech commerce struggle has landed: the White Home is obstructing Nvidia’s H20 chip gross sales to China. “This week have been the primary pictures fired within the commerce struggle within the tech world,” mentioned Wedbush analyst Dan Ives.
With 145% reciprocal tariffs in play, and tech nonetheless awaiting Part 232 hits – Nvidia is now “caught within the eye of this Class 5 storm,” mentioned Ives. Whereas the monetary harm could also be manageable for now, the strategic sign is deafening. America’s most prized chipmaker simply received walled off from the world’s second-largest economic system. “Nvidia is likely one of the most necessary items on this chess recreation with China…and proscribing its H20 chips is a vital transfer that may clearly spark extra actions from Beijing.”
Learn Additionally: Billionaire Peter Hargreaves-Backed Fund Offloads Stake In Meta, Microsoft Amid International Financial Woes
In the meantime, CEO Jensen Huang is reportedly in China – an eyebrow-raising element amid rising tensions. As Ives places it, “the Avenue waits for the following poker transfer.”
Whereas Nvidia’s dominance in AI stays unchallenged, the short-term turbulence is actual. The market is already “baking in a 7%-10% (or extra) reduce to 2025 numbers throughout the board,” Ives says. The upcoming June quarter? A mulligan, with “minimal/no steering anticipated throughout this earnings season.”
Including gas to the fireplace: Superior Micro Gadgets Inc AMD and others at the moment are seeing related restrictions, a development that is been brewing because the Biden administration however is now entrance and middle in Trump’s commerce struggle redux. Ives does not mince phrases: “The Trump Administration is aware of there may be one chip and firm fueling the AI Revolution and it is Nvidia… and put a ‘Do Not Enter’ check in entrance of China.”
Nvidia stays the ace in America’s AI hand – however proper now, it is being performed in a world poker recreation, not an earnings report.
Learn Subsequent:
Picture: Shutterstock/gguy
Market Information and Information dropped at you by Benzinga APIs
© 2025 Benzinga.com. Benzinga doesn’t present funding recommendation. All rights reserved.
