NVIDIA Corp (NASDAQ:NVDA) shares are trading lower on Wednesday. The stock may be declining after reports surfaced stating that Nvidia’s H200 chips are being restricted in China.
- Nvidia stock is facing resistance. Why is NVDA stock trading lower?
China’s De-Facto Ban: A Game Changer For Nvidia
According to Reuters, Chinese customs authorities reportedly told customs agents this week that Nvidia’s H200 chips are not permitted to enter the country. Officials have warned companies not to buy the chips unless absolutely necessary. One source described the language from officials as so strict that it amounts to a de‑facto ban, at least for now.
The move comes after the Trump administration recently formally approved the H200 for export to China under certain conditions. Despite that approval, China appears to be blocking the chips at the border.
“The wording from the officials is so severe that it is basically a ban,” one person familiar with the matter told Reuters.
Potential Bargaining Tactic
Analysts believe Beijing may be trying to gain some leverage over Washington ahead of President Donald Trump’s April visit to Beijing to meet with Xi Jinping, especially as both sides try to maintain a fragile trade truce.
If Nvidia were allowed back into the Chinese market, it would represent a major financial win, not just for the company, but also for the U.S. government, which collects a 25% fee on chip sales.
NVDA Technical Indicators Show Mixed Signals
The stock is currently trading 1.3% below its 20-day simple moving average (SMA) and 0.8% below its 100-day SMA, indicating some short-term weakness. Over the past 12 months, shares have increased 38.10% and are currently positioned closer to their 52-week highs than lows, suggesting a longer-term uptrend.
The RSI is at 50.33, which is considered neutral territory, while the MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $196.00
- Key Support: $170.50
NVDA Price Action: Nvidia shares were down 2.08% at $181.94 at the time of publication on Wednesday, according to Benzinga Pro.
Image: Robert Way/Shutterstock
Recent Comments