Nvidia Stock Slips as AI Market Concerns Rise and China Sales Prospects Fade
Nvidia stock drops amid AI market valuation concerns and fading hopes for renewed Blackwell chip sales to China.
Nvidia chips power the world’s leading AI systems but face headwinds as China sales remain restricted.
Nvidia shares declined early on Wednesday as growing concerns about the artificial intelligence (AI) market weighed on investor sentiment, while hopes of renewed sales to China appear increasingly unlikely.
In premarket trading, Nvidia stock fell 1.3% to $196.11, extending Tuesday’s 4% drop. Other AI-focused companies also saw pressure, with S&P 500 futures down 0.2%, signaling broader market weakness in the technology sector.
Market analysts say investor worries about overvaluation among AI-exposed firms have contributed to the slide. Shares of Advanced Micro Devices (AMD) also dropped 5% in premarket trading despite the company’s upbeat outlook, with executives emphasizing that “demand for compute has never been greater.”
Adding to Nvidia’s challenges, the Trump administration has confirmed it will not pursue sales of the company’s latest Blackwell AI chips to China. White House press secretary Karoline Leavitt stated that the topic was not discussed during President Donald Trump’s recent meeting with Chinese President Xi Jinping in South Korea.
Leavitt clarified, “As for the most advanced Blackwell chip, that’s not something we’re interested in selling to China at this time.”
Nvidia remains a dominant force in the AI chip market, with its processors widely used for training and running advanced AI systems. However, ongoing trade restrictions and tightening regulations around semiconductor exports to China continue to create uncertainty for the chipmaker’s global growth outlook.
