TLDR
- Nvidia stock dropped over 7% during the week, falling 1.1% in Friday premarket trading to $186.01
- White House blocked sales of Nvidia’s B30A scaled-down AI chips to Chinese customers
- Beijing mandated state-funded data centers use only domestically produced chips
- CEO Jensen Huang said no active talks exist for selling Blackwell chips to China
- AI infrastructure financing concerns grew after OpenAI’s $1.4 trillion spending plan discussion
Nvidia shares continued sliding Friday, adding to a difficult week for the chip maker. The stock fell 1.1% in premarket trading to $186.01, extending losses beyond 7% for the five-day period.
Two issues drove the decline. Growing worries about AI infrastructure financing hit sentiment across the sector. More pressing, new restrictions from Washington and Beijing threatened to close off Chinese markets entirely.
The weekly drop stands out against Nvidia’s strong 2025 performance. Shares remain up 40% year-to-date through Thursday’s close. But the recent losses signal potential headwinds ahead for the AI chip leader.
AI Spending Questions Surface
OpenAI sparked concerns about the sustainability of AI investments. CFO Sarah Friar suggested the company would welcome government backing for its infrastructure plans. CEO Sam Altman later clarified OpenAI doesn’t seek federal guarantees or bailouts for its $1.4 trillion spending commitments.
Thomas Shipp from LPL Financial noted earnings expectations keep rising. He said AI momentum remains strong despite questions about investment returns.
The spending debate comes as companies pour billions into AI infrastructure. Each new investment raises questions about when returns will materialize.
White House Blocks New Chip Model
The Biden administration told federal agencies it won’t permit Nvidia to sell B30A chips to China. The Information broke the story Thursday, citing three informed sources.
Nvidia had distributed samples to several Chinese customers. The B30A handles large language model training when deployed in clusters. Chinese tech companies need this capability for their AI development.
The company is redesigning the B30A. Two employees told reporters Nvidia hopes for a policy reversal. A company spokesperson said Nvidia holds “zero share in China’s highly competitive market for datacenter compute.”
The company doesn’t include Chinese revenue in financial guidance. Executives estimate the restrictions cost $2 billion to $5 billion in potential quarterly sales.
Beijing Tightens Rules on Foreign Chips
Chinese regulators issued new guidance Wednesday. All state-funded data center projects must use domestically developed chips exclusively.
Projects less than 30% complete must remove foreign chips or cancel orders. More advanced projects face individual review.
The directive blocks Nvidia from a valuable market segment. It covers chips under U.S. export controls that still reach China through unofficial channels.
Chinese authorities previously discouraged local customers from buying Nvidia AI processors. The new rules formalize the exclusion.
CEO Jensen Huang addressed the China situation Friday during a Taiwan visit. He confirmed no active discussions about selling Blackwell chips to Chinese buyers.
Other chip stocks fell in sympathy. Advanced Micro Devices dropped 1.3% in premarket trading. Broadcom declined 1.1%.
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