Chipmaker Nvidia’s (NVDA) shares fell marginally on Tuesday morning. This follows CEO Jensen Huang being conspicuously left off the list of 16 top American business executives expected to accompany President Donald Trump to his meeting with Chinese counterpart Xi Jinping in Beijing, China, from May 13 to 15.
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New trading tool for NVDA bearsWhy Nvidia’s Absence Is Raising Eyebrows
Huang’s absence from the list is creating a buzz for several reasons beyond Nvidia’s status as the world’s most valuable company.
The chipmaking giant has been at the center of the AI technology battle between the U.S. and China, with export restrictions impacting its Chinese business. Some analysts believe talks on semiconductors might be saved for a different occasion, with the incoming meeting focused on areas such as agriculture and aviation.
The development comes as Huang last week restated the impact of U.S. export restrictions on the company, noting that Nvidia “went from 95% to 0%” in China’s AI graphics processing unit (GPU) market. Now, investors are watching whether the Trump-Xi summit could yield an AI deal that might revive Nvidia’s China business.
Is an AI Deal Possible from the Summit?
The summit will mark the first physical meeting between the two leaders since their last one in October in South Korea, where they agreed to pause the trade war between both countries.
However, an AI deal would require both leaders to work out a middle ground that protects their respective interests. While the U.S. is seeking to maintain its technological edge, China is aiming to boost domestic production.
In January, the Trump administration gave Nvidia conditional approval to export its H200 microchips to China, but China, in response, is believed to have kicked off preparations for rules to limit their imports to boost domestic production.
Already, China’s strategy is paying off. Huawei Technologies and Alibaba’s (BABA) T-Head now boast around 41% of China’s advanced AI accelerator market.
Is NVDA a Good Stock to Buy?
On Wall Street, Nvidia’s shares remain a Strong Buy based on analysts’ consensus rating. This breaks down to 40 Buys, one Hold, and one Sell assigned over the past three months.
In addition, the average NVDA price target of $276.41 implies about 27% upside.
