President Donald Trump has declared that Nvidia’s (NASDAQ:NVDA) advanced Blackwell AI chip will not be available for “other people.” This decision comes amid concerns about the potential sale of a scaled-down version to China.
Trump On Nvidia’s Blackwell Chip
Trump announced on Sunday that the Blackwell AI chip, which he reportedly said was a decade ahead of its competitors, will not be accessible to “other people,” as reported by Reuters. The announcement was made aboard Air Force One, highlighting the strategic importance of the technology.
Concerns have been voiced by China hawks in Washington, who fear that access to such technology could enhance China’s military and AI capabilities. Rep. John Moolenaar (R-Mich.), chair of the House Select Committee on China, likened the potential sale to China to providing Iran with weapons-grade uranium. Although Trump previously hinted at discussing the chips with Chinese President Xi Jinping, the topic was not addressed during their recent summit in South Korea.
Huang Says Nvidia Did Not Seek Export Licenses
Nvidia CEO Jensen Huang stated that the company has not sought U.S. export licenses for China, citing Beijing’s current stance. Meanwhile, Nvidia plans to supply over 260,000 Blackwell AI chips to South Korea, including major firms like Samsung Electronics (KRX: 005930).
Blackwell Matters For Nvidia’s Success
The Blackwell AI chip is pivotal for Nvidia’s financial future, with analysts predicting it could generate $5 billion to $6 billion in revenue next quarter. The chip’s importance is underscored by Nvidia’s recent surge past a $5 trillion market capitalization, amid discussions of an AI gold rush.
Hopes For Nvidia’s China Exports
Despite the restrictions, CEO Huang remains hopeful about resuming sales to China, emphasizing the market’s vibrancy and the need to address U.S. national security concerns. “I'll keep being optimistic that China…would want American companies to be in the China market…because China wants to be a region, a market where people invest,” he said.
Nvidia stock closed nearly 0.2% lower at $202.49 on Friday. Benzinga's Edge Stock Rankings indicate the stock has a Value in the 3rd percentile. Here is how the stock compares with other hot AI plays.
Read Next:
Image via Shutterstock/ Brian Jason
