Nvidia’s (NVDA) investors are currently wondering whether the AI chip giant can continue doing business with China as trade tensions and export controls evolve. Notably, recent comments from Nvidia’s CEO Jensen Huang sparked uncertainty around future demand and regulatory roadblocks, leaving investors eager to understand the impact on NVDA stock.
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Huang Hints at Uncertainty in China Chip Demand
Recently, U.S. President Donald Trump met with Huang in Washington, D.C., to talk about rules on exporting AI chips. However, while speaking to reporters, Huang said he wasn’t sure if China would allow local companies to buy the chip. He also warned that if Nvidia reduces or weakens the chip’s performance before selling it to China, Chinese buyers might refuse it.
Meanwhile, Huang also met with U.S. lawmakers to argue against the GAIN AI Act, a plan that could have forced Nvidia and Advanced Micro Devices (AMD) to sell their most advanced AI chips to American customers before selling them to China or other restricted markets. Huang also cautioned that different AI laws across U.S. states could slow down innovation and make AI development harder in the country.
Importantly, Nvidia scored a potential win in Washington after U.S. lawmakers chose not to include the GAIN AI Act in the upcoming defense bill.
What It Means for NVDA Stock and Investors
Nvidia’s ability to sell advanced AI chips to China is uncertain right now because U.S. export controls and shifting political priorities continue to shape what it can ship abroad. While the company still earns from China through older or modified chips, selling cutting-edge products could get harder if restrictions tighten.
For NVDA investors, this created uncertainty as China is a huge market that can speed up or slow down Nvidia’s growth, especially in data-center and AI sales. Any limits could give rivals more room in China and pressure long-term revenue, while relaxed rules could boost demand and strengthen NVDA stock’s outlook. Below is a screenshot showing how Nvidia’s revenue is distributed across key regions.
Overall, NVDA is up more than 30% year-to-date. After strong gains earlier in the year, the stock fell over 12% in November as investors pulled back amid AI bubble concerns.
Is Nvidia a Buy or Sell Stock?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 39 Buys, one Hold, and one Sell assigned in the last three months. At $258.10, the Nvidia average share price target implies 44% upside potential.
