Reports are emerging that China is likely to remain off-limits to Nvidia (NVDA) as senior advisors to U.S. President Donald Trump raise concerns about microchip sales to the Asian nation.
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Trump was reportedly planning to discuss the export of Nvidia’s advanced Blackwell artificial intelligence (AI) chips to China during his Oct. 30 meeting with Chinese leader Xi Jinping in South Korea. However, Trump ultimately decided against discussing the issue following strong opposition from his top advisers.
The Wall Street Journal is reporting that U.S. Secretary of State Marco Rubio and other senior officials warned Trump that allowing the export of Nvidia’s advanced microchips and processors would threaten national security by boosting China’s AI capabilities, possibly for defense purposes.
Thorny Issue
U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer also reportedly opposed allowing Nvidia to ship its Blackwell AI microchips to China. Which U.S. technologies should be sold to China has become a thorny issue in the Trump administration and in Silicon Valley.
Nvidia CEO Jensen Huang has lobbied hard in recent months to maintain access to the Chinese market, which he estimates is home to about half of the world’s AI researchers. Just before the Trump-Xi meeting, Huang said to reporters: “I really hope President Trump will help us find a solution. Right now we’re in an awkward place.”
Analysts have said that denying Nvidia full access to the Chinese market represents a significant setback for the company as exports to China could potentially generate tens of billions of dollars in revenue.
Is NVDA Stock a Buy?
The stock of Nvidia has a consensus Strong Buy rating among 39 Wall Street analysts. That rating is based on 37 Buy, one Hold, and one Sell recommendations issued in the past three months. The average NVDA price target of $237.14 implies 14.27% upside from current levels.
