Shares in U.S. chipmakers Nvidia (NVDA), Intel (INTC), and Advanced Micro Devices (AMD) dropped on Friday afternoon after President Donald Trump ended his two-day visit to Chinese counterpart Xi Jinping without any sign of a deal on semiconductors.
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Trade NVDA with leverageTrump’s China Trip Disappoints U.S. Chipmakers
Washington had invited Jensen Huang, Nvidia’s chief executive, at the last minute to accompany Trump on the visit, joining dozens of American business executives. Analysts and investors looked for common ground that would enable the chipmaking giant to export its advanced H200 data center graphics processing units (GPUs) to China, one of the world’s fastest-growing AI markets, where its presence has been battered due to export restrictions.
During the summit, Trump and Xi discussed the Iran conflict, China’s interest in Taiwan, and non-sensitive trade topics such as Chinese purchases of U.S. farm goods. However, Jamieson Greer, the U.S. trade representative, told Bloomberg that talks on U.S. export controls on semiconductor chips were not a major topic on the agenda.
Chinese Chipmakers Gain Ground on Nvidia
This comes as Reuters on Thursday revealed that 10 Chinese companies, including Alibaba (BABA), Tencent (TCHEY), ByteDance, and JD.com (JD), got authorization from the U.S. government to buy Nvidia’s H200 GPUs. However, no single delivery has been made yet, sources told the outlet.
In January, the Trump administration gave Nvidia the go-ahead to sell the chips to China, but under certain conditions. In response, China reportedly began drafting rules to cap the imports of the chips.
Nvidia’s bruised presence in the Chinese AI market has given more room to domestic chipmakers such as Huawei Technologies and Alibaba to rapidly double down on their share of the Chinese AI market, which is estimated to be worth about $50 billion.
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