2 days ago
8
Rudro Chakrabarti
Mon, May 18, 2026 astatine 9:30 AM CDT 6 min read
President Donald Trump confirmed Friday what Nvidia (NASDAQ:NVDA) investors person been softly worrying astir for months. Speaking to reporters aboard Air Force One aft a two-day acme with Chinese President Xi Jinping, Trump said Beijing has refused to o.k. purchases of Nvidia's H200 AI chips, and the crushed is straightforward (1).
"They person a overmuch higher level than H200. China needs it and yea it came up," Trump said. "They take not to bargain due to the fact that they privation to make their own. I deliberation thing could hap connected that" (1).
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Nvidia banal fell 4.4% Friday, giving backmost the all-time precocious it had touched a time earlier connected quality that the U.S. Commerce Department had approved the merchantability (1). For investors trying to work wherever Nvidia's China gross is heading, this week was expected to beryllium a turning point. Instead, it looked similar confirmation that the turning constituent already passed.
What really happened
Earlier successful the week, Reuters reported that the Commerce Department had cleared astir 10 Chinese firms — including Alibaba, Tencent, ByteDance and JD.com — to acquisition up to 75,000 H200 chips each done approved distributors similar Lenovo and Foxconn (2). At existent pricing, that ceiling caps archetypal income astatine astir $15-$20 cardinal successful gross (3). KeyBanc expert John Vinh has modeled full Chinese request astatine astir 1.5 cardinal units annually, oregon astir $30 cardinal successful revenue, if the licensing model expands (3).
Nvidia CEO Jensen Huang was added to the White House delegation astatine the past minute, joining Trump successful Alaska en way to Beijing successful what was wide work arsenic an effort to propulsion a woody crossed the enactment (1).
It did not work. As of Friday, not a azygous H200 had shipped to a Chinese buyer, and Beijing had softly steered home firms distant from pursuing done connected the orders they placed earlier successful the twelvemonth (1).
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Why this is simply a bigger occupation than it looks
Several pieces of grounds suggest China has made a strategical determination alternatively than a tactical pause.
Commerce Secretary Howard Lutnick told a Senate proceeding past period that Chinese firms are "trying to support their concern focused connected their ain domestic" suppliers including Huawei (4).
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