:max_bytes(150000):strip_icc()/GettyImages-2205219950-75903e531f684df38fd1d0f9170406fa.jpg?w=780&resize=780,470&ssl=1 "Nvidia CEO Huang Flies to Beijing for Talks, Report Says")
Key Takeaways
- Nvidia CEO Jensen Huang reportedly visited Beijing, meeting Chinese Vice Premier He Lifeng and DeepSeek’s founder, among others, after the chip firm was hit with new export curbs on its sales to China.
- Huang emphasized China’s importance to Nvidia’s sales, according to state media, after the company said it’s set to take a $5.5 billion charge due to export curbs on the sale of its H20 chips to China.
- Analysts said the writedown suggests the company is not optimistic about being granted a license to export the chips, with Morningstar Research saying sales to China could go “close to zero.”
Nvidia (NVDA) CEO Jensen Huang reportedly visited Beijing, meeting Chinese Vice Premier He Lifeng and DeepSeek’s founder, among others, after the chip firm was hit with new U.S. export restrictions on its sales to China.
Citing people familiar with his travel schedule, the Financial Times reported Huang met with Nvidia clients, including AI startup DeepSeek’s founder, to discuss new chip designs for Chinese customers. He also held negotiations with Chinese Vice Premier He Lifeng, the report said, citing one person familiar with the meeting. According to the report, citing state broadcaster CCTV, Huang had said “China was a very important market for Nvidia” and indicated he hoped the AI chip designer could “continue co-operating” with the country.
Nvidia shares were little changed in premarket trading Thursday. They tumbled nearly 7% Wednesday after the company said it’s set to take a $5.5 billion quarterly charge as a result of U.S. restrictions on exports of its H20 AI chips to China. The new restrictions—set by the White House to prevent the chips from being used by Beijing to build a supercomputer—caught investors off guard since the chips were less powerful than its current lineup and had been tailored to meet Biden-era chip curbs.
Analysts said the writedown suggests the company is not optimistic about being granted a license to export the chips, with Morningstar Research saying sales to China could go “close to zero.”
An Nvidia spokesperson declined to comment.
Source link
:max_bytes(150000):strip_icc()/GettyImages-2208377919-297ed44fbf2c452bb4f85488d80d5e1e.jpg?w=390&resize=390,220&ssl=1 "Healthcare Stocks Sink on Report of DOJ Probe of UnitedHealth Group")
:max_bytes(150000):strip_icc()/GettyImages-2208021055-ce6ac024bfda438284f2106120f69676.jpg?w=390&resize=390,220&ssl=1 "Walmart Tops Q1 Profit Estimates, Affirms Full-Year Forecasts")