Two U.S. senators—Republican Jim Banks and Democrat Elizabeth Warren—sent a letter to Nvidia (NVDA) CEO Jensen Huang on Friday, urging him to be cautious during his trip to China. They asked him not to meet with any companies that are believed to be helping China get around U.S. export restrictions, especially those connected to the Chinese military or intelligence agencies and that are listed on the U.S. export blacklist. The senators warned that even appearing to support these companies could weaken U.S. efforts to control advanced chip exports.
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Huang’s trip was scheduled for the same day the letter was sent. In response, an Nvidia spokesperson said that when American technology leads the global standard, “America wins,” and noted that China has one of the world’s largest groups of software developers. They added that AI systems should be designed to run best on U.S.-based hardware, which would encourage other countries to choose U.S. tech over alternatives. However, the concern from lawmakers is that Huang’s meetings could expose weaknesses in current rules and send the wrong signal about America’s stance on protecting its technology.
This issue ties into recent tensions between Nvidia and U.S. regulators. At the Computex trade show in May, Huang praised President Donald Trump’s decision to loosen some AI chip export rules and called the earlier restrictions ineffective. But newer limits put in place in April could still cost Nvidia up to $15 billion in lost revenue. Lawmakers are now considering laws that would require chipmakers to verify where their products end up. There are also growing fears that Chinese companies like DeepSeek are helping the military and using fake companies to dodge the rules. Despite all this, Nvidia is reportedly preparing a cheaper version of its Blackwell AI chips specifically for the Chinese market.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 37 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $176.29 per share implies 6.7% upside potential.
