Global semiconductor stocks, including Intel Corp. (NASDAQ:INTC), fell after President Donald Trump and Chinese President Xi Jinping ended their summit without announcing major chip agreements or progress on NVIDIA Corp.’s (NASDAQ:NVDA) China sales, disappointing investors who had hoped for easing trade restrictions.
NVIDIA-China Expectations Lose Momentum
Investors had expected NVIDIA CEO Jensen Huang’s participation in Trump’s China delegation to help unlock progress on AI chip sales to China.
Washington approved the export of NVIDIA’s H200 chips to China, but Beijing has not officially cleared the shipments.
AJ Bell head of financial analysis Danni Hewson told the Wall Street Journal on Friday that investors had anticipated concrete developments from the summit that could further strengthen NVIDIA’s sales outlook.
However, U.S. Trade Representative Jamieson Greer told Bloomberg that NVIDIA and semiconductor issues were not a central focus during the meetings.
NVDA Price Action: Nvidia shares were down 3.94% at $226.46 at the time of publication on Friday.
Export Controls Continue To Shape AI Competition
Washington continues using export controls to limit China’s access to advanced semiconductors tied to artificial intelligence and military applications, pushing Beijing to accelerate domestic chip development.
Greer said China ultimately controls whether it purchases NVIDIA chips, adding that Chinese policymakers remain heavily focused on reducing reliance on U.S. technology and strengthening homegrown semiconductor capabilities.
Intel Price Action
Intel shares were down 6.55% at $108.34 at the time of publication on Friday, according to Benzinga Pro data.
The decline may also reflect investors taking profits after the stock’s historic rally and record high earlier this week. Despite the pullback, analysts remain optimistic about Intel’s long-term prospects.
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