Nvidia’s (NVDA) future in the world’s largest chip market remains a total mystery following the important meeting between Donald Trump and Xi Jinping. On Wednesday, the two leaders met in Beijing to discuss trade and technology, yet no clear deal was made to help American chipmakers. While CEO Jensen Huang joined the trip on Air Force One to push for better access, Chinese companies are already moving their money to domestic rivals like Huawei.
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President Donald Trump made a direct request to “open up” the Chinese economy for American tech giants during his 36-hour visit. Despite the lavish welcome at the Great Hall of the People, the U.S. Trade Representative reported on Friday that a breakthrough for Nvidia’s advanced H200 chips is still far away.
The summit focused on many sensitive subjects, but it failed to provide the immediate export clarity that investors wanted. Jensen Huang joined the delegation at the last minute to protect a $50 billion business interest that has been bruised by strict trade rules.
Huawei Builds Domestic Power
While the two presidents talked in Beijing, Huawei continued its explosive growth in the semiconductor world. The company expects its AI chip revenue to jump by 60% this year to reach roughly $12 billion.
This massive surge comes as Chinese tech giants like Alibaba (BABA) and Tencent (TCEHY) switch to the new Ascend 950PR processor. Analysts believe that local suppliers will handle the majority of the market by 2030, leaving very little room for Western companies to compete.
DeepSeek Drops American Hardware
Chinese AI firms are no longer waiting for American trade laws to change before they build new systems. The popular AI company DeepSeek recently announced that its newest models are now optimized to run on Huawei chips instead of Nvidia hardware. This move marks a major milestone in China’s effort to reduce its reliance on Western technology. Although some engineers say the domestic software still needs work, the shift shows that local firms are finding ways to succeed despite the ongoing standoff between Washington and Beijing.
What Is Nvidia Stock Forecast for 2026?
Analysts rate Nvidia stock as a Strong Buy, with 40 Buys, one Hold, and one Sell assigned in the last three months. At $279.28, Nvidia’s average 12-month stock price target implies an upside of over 18.5% from the current level.
