Nvidia Caught in U.S.–China Tensions as Lawmakers Push Back on AI Chips

Nvidia (NVDA) is once again caught between Washington and Beijing, as growing pushback from U.S. lawmakers adds pressure to the AI chip trade debate. The concerns come as Reuters reported that Chinese authorities are currently not allowing Nvidia’s H200 AI chips to enter the country. One source described the move as “basically a ban,” although the situation could still change.

It remains unclear whether the restriction affects existing orders or only new shipments. Nvidia stock was down less than 1% in early U.S. trading.

China Pushes Back as U.S. Loosens Rules

The report comes shortly after the U.S. Commerce Department changed its export review process, clearing the way for Nvidia to restart limited H200 sales to China. The approval comes with tight rules, including third-party testing, caps on shipments, and limits on how the chips can be used.

While the White House has eased controls, Beijing appears to be taking a tougher stance. China has been working to cut its reliance on foreign chips and support local suppliers. That effort has made officials cautious about allowing powerful U.S. AI chips to gain a strong foothold in the country.

Washington Backlash Adds Pressure

The decision to allow AI chip exports has drawn criticism in Washington. Matt Pottinger warned lawmakers that exporting advanced AI chips could weaken the U.S. lead in AI and strengthen China’s military and cyber capabilities.

Other lawmakers raised similar concerns and questioned whether the U.S. can truly control how the chips are used once they are shipped overseas.

Is NVDA Stock a Buy?

Nvidia stock has a consensus Strong Buy rating among 41 Wall Street analysts. That rating is based on 39 Buy, one Hold, and one Sell recommendations issued in the past three months. The average NVDA price target of $264.97 implies 44.68% upside from current levels.

Read more analyst ratings on NVDA stock