TLDR
- Nvidia shares fell 1.1% Friday, closing out a week with losses exceeding 7% across five trading sessions
- White House denied permission for Nvidia to sell B30A AI chips to Chinese markets
- China issued rules forcing state-funded data centers to exclusively use domestic chip manufacturers
- Jensen Huang confirmed no ongoing negotiations for Blackwell chip sales to China
- Questions about AI infrastructure financing added pressure after OpenAI’s spending plan comments
Nvidia shares extended their losing streak Friday morning. The stock dropped 1.1% to $186.01 in premarket trading, marking the fifth consecutive day of declines.
The week proved challenging for the AI chip manufacturer. Shares lost more than 7% over the period. Thursday alone saw a 3.7% decline.
Despite the recent pullback, investors still hold gains for 2025. The stock remains up 40% year-to-date through Thursday’s close. But fresh obstacles in China and financing concerns cloud the near-term outlook.
Washington Blocks Latest Chip Variant
The White House made clear it won’t authorize Nvidia’s B30A chip sales to China. Multiple federal agencies received notification of the decision, The Information reported Thursday.
Nvidia had already sent chip samples to Chinese customers. The B30A offers capabilities for training large language models when configured in cluster arrangements. Chinese tech firms require this functionality for AI development.
The company is attempting to modify the B30A design. Two Nvidia employees said the redesign aims to gain administration approval.
An Nvidia spokesperson addressed the China situation directly. The company maintains “zero share in China’s highly competitive market for datacenter compute,” the representative said. Financial projections exclude Chinese revenue entirely.
Company executives calculate the China restrictions eliminate $2 billion to $5 billion in possible revenue each quarter. That represents a substantial market opportunity now off the table.
China Implements Domestic-Only Chip Policy
Beijing rolled out new requirements Wednesday for data center construction. Any project receiving government funding must use chips made exclusively in China.
The directive hits projects at different completion stages differently. Data centers below 30% completion must remove all foreign chips or abandon purchase agreements. Projects further along face individual assessments.
The policy effectively bars Nvidia from a profitable market sector. It applies even to advanced chip models that reach China through unofficial distribution networks despite U.S. export controls.
Chinese regulators already discouraged local businesses from purchasing Nvidia AI processors. The new mandate formalizes the exclusion with binding requirements.
CEO Jensen Huang spoke about China operations Friday while visiting Taiwan. Reuters reported his confirmation that “no active discussions” exist regarding Blackwell chip sales to Chinese buyers.
Broader Sector Pressures
AI infrastructure financing emerged as another concern. OpenAI CFO Sarah Friar suggested government backing for data center investments. CEO Sam Altman subsequently clarified the company doesn’t want federal guarantees or bailout provisions for its $1.4 trillion spending plans.
Thomas Shipp at LPL Financial said earnings forecasts continue growing. He noted AI momentum stays strong even as each investment dollar increases return expectations.
Competing chip makers felt similar pressure Friday. Advanced Micro Devices fell 1.3% in premarket activity. Broadcom declined 1.1%.
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