Trump and Xi Skip Discussing Nvidia’s Advanced Blackwell Chips
Recent discussions between US President Donald Trump and Chinese President Xi Jinping in South Korea have sparked interest in financial markets. While their talks covered several important topics, notably absent was a precise discussion regarding Nvidia’s advanced Blackwell chips.
Trump and Xi Discuss Nvidia’s Impact
Before his meeting with Xi, President Trump highlighted Nvidia’s Blackwell chips, referring to them as “super duper” technology. However, after the meeting, he clarified that while Nvidia and semiconductors were addressed, detailed discussions about the Blackwell chips did not occur.
Nvidia’s Market Position
Following the meeting, Nvidia shares dropped nearly 2%. Analysts suspect this decline is linked to the geopolitical climate, which complicates the export of advanced AI chips to China. This situation underscores the tension surrounding technology transfers between the two nations.
- Nvidia has previously endured restrictions, negotiating for an allowance to ship limited versions of their AI chips to China.
- The current market demand for these processors is reportedly unclear, with some reports indicating high demand, while others suggest restrictions persist.
Challenges for Nvidia
Earlier this year, Nvidia faced significant challenges in accessing the Chinese market. In May, CEO Jensen Huang noted the importance of the Chinese market for global AI leadership, stating that many AI researchers are based in China. His remarks highlighted the competitive pressure Nvidia faces from China’s push to develop its own AI capabilities.
Future Outlook for Nvidia
Nvidia’s upcoming earnings report on November 11 is anticipated to provide crucial insights into its recovery in China. Estimates suggest a forecast of $54 billion in sales for the upcoming quarter. However, this projection does not incorporate any potential shipments to China.
Despite these uncertainties, Nvidia’s success appears robust. CEO Huang mentioned that orders for Blackwell and Rubin chips could surpass $500 billion by 2026, reflecting strong long-term market confidence.
