This week, the financial market was shaken by DeepSeek R1—a revolutionary AI model from China. DeepSeek is said to be 97% more efficient than its U.S. competitors, sending shockwaves through Wall Street. As a result, Nvidia and other AI-related companies saw their stock prices decline.
Now, it seems Donald Trump is also concerned. According to Bloomberg, he is considering stricter regulations on Nvidia chip sales to China.
America Aims to Maintain AI Dominance
The primary goal of these potential new restrictions is to secure the U.S.’s dominance in artificial intelligence.
However, the Bloomberg news remain unconfirmed, as they rely on anonymous sources who claim that Trump is considering an outright ban on exporting Nvidia’s H20 AI processor to China.
The H20 chip is a slower version of Nvidia’s H100 processor, specifically developed for the Chinese market to comply with existing sanctions and regulations. However, it now appears that even this chip may no longer be allowed for export to China.
With this move, the U.S. is signaling that it perceives China’s technological advancements as a serious threat. This concern is not entirely unfounded—given China’s much larger population, it has statistically higher chances of achieving technological breakthroughs.
There is a growing possibility that the U.S. could one day lose its dominance to a rising global power—and China is a leading contender in this race.
A Problem for Nvidia?
Further restrictions on American chips in China are not necessarily beneficial for the U.S.. Such measures could significantly impact Nvidia’s revenues, as the company generates substantial sales in China.
For Nvidia, this development will likely not be welcomed with enthusiasm.
It appears that companies like Nvidia are increasingly becoming political pawns in global power struggles, a trend that may unsettle investors by adding more uncertainty to the market.
Additionally, there is growing skepticism about whether banning chip exports to China is a wise strategy. In reality, such restrictions may only further motivate China to accelerate its independence and invest heavily in its own chip production capabilities.
NVIDIA (NVDA) Stock Price Analysis
NVIDIA’s stock price has seen high volatility, recently experiencing a sharp drop from $148 to $120, breaking key support levels. The price is now trading around $123.95, attempting to stabilize after a heavy sell-off.
Volume has spiked, indicating strong market reactions—either panic selling or institutional accumulation. If NVDA fails to reclaim $128, further downside toward $115-$110 is possible. However, a breakout above $130 could restore bullish momentum.
Watch for reversal signs before entering trades!
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