Despite Jensen Huang’s determined efforts, including traveling to China alongside Donald Trump to negotiate easing restrictions on the export of American AI chips, it increasingly appears the mission ended in failure. Huang seemingly failed to secure any concessions, while Beijing is now sending one of its clearest signals in months. China’s technology sector is expected to rely more heavily on domestic solutions rather than American semiconductors.
According to the latest media reports, Chinese authorities have added Nvidia’s RTX 5090D V2 gaming GPU to a list of banned products. At first glance, this may appear to target only the gaming market, but the implications run far deeper. The chip was not only used by gamers, but also by certain AI engineers and companies developing artificial intelligence systems. The card provided access to Nvidia’s Blackwell architecture and was viewed by part of the market as a workaround to U.S. export restrictions.
This is where the biggest irony of the entire situation emerges. Washington has spent months trying to limit China’s access to the world’s most advanced AI chips, while Nvidia attempted to find a compromise by creating specially downgraded versions of its products exclusively for the Chinese market. The issue, however, is that even these restricted chips proved powerful enough to support AI development in China. Now Beijing appears ready to respond with its own measures, officially limiting Chinese companies’ access to Nvidia’s latest hardware while simultaneously promoting domestic alternatives from local manufacturers.
The timing of the decision is also highly symbolic. Reports about the RTX 5090D V2 being added to the banned list surfaced during the visit of Donald Trump and Jensen Huang to China. It is difficult not to interpret this as both a political statement and a demonstration of strength from Beijing. China is signaling that it no longer intends to depend on American technology suppliers and is prepared to accelerate the development of its own AI ecosystem.
For Nvidia, the issue is highly significant, as China has long been one of the company’s most important sources of demand for advanced AI hardware. If Beijing truly begins administratively restricting Nvidia chips while prioritizing domestic solutions, it could eventually lead to a permanent loss of part of the Chinese market for the American giant.
That is precisely why the market will be watching Nvidia’s quarterly earnings today even more closely than usual. Expectations remain enormous, the company’s valuation is extremely demanding, and investors have spent months pricing in a near-perfect growth scenario. The problem is that at Nvidia’s current scale, even the smallest crack in the narrative of unlimited AI demand could be quickly noticed by the market.
Source: xStation5
Market Wrap: The “Bulls” Are Back on the European Trading Floor 💥
Apple shares fall amid WWDC conference 📉 No AI breakthrough?
The World Cup on the Market: Is There an Opportunity for Profit?
Intel gains 10% after talks with Google and Nvidia
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
