Nvidia CEO Jensen Huang arrived in Beijing this week for meetings with Chinese officials and technology executives, as the company navigates new US restrictions on chip exports to China.
The visit comes shortly after the Trump administration imposed fresh curbs on the sale of Nvidia’s H20 chip—a version of its artificial intelligence processors tailored for the Chinese market.
Huang landed in China on Wednesday and attended engagements organized by the China Council for the Promotion of International Trade, a government-linked group that plays a key role in facilitating international business relations. Chinese state media shared images of Huang meeting with stakeholders and noted his previous statements expressing a desire to maintain cooperation with China.
The timing of the trip is significant. Just two days earlier, the US government announced that the export of the H20 chip would now require a license, effectively limiting its availability in China. Nvidia had developed the H20 chip under earlier US guidelines in an effort to remain compliant with export controls while continuing to serve the Chinese market.
The latest restrictions reportedly came as a surprise to Nvidia, which had told major Chinese customers—including Alibaba, ByteDance, and Tencent—that sales of the H20 chip would continue unaffected. As a result of the new measures, the company now expects a $5.5 billion reduction in earnings.
Nvidia’s stock has been under pressure in recent months. Following the announcement of the export curbs, shares dropped 7%, adding to broader declines driven by economic uncertainty, increased competition from Chinese AI firms like DeepSeek, and a general market pullback. The company’s share price has fallen 22% so far this year.
The visit also coincides with mounting scrutiny from US lawmakers over whether restricted chips may have reached Chinese AI firms, such as DeepSeek. Huang’s presence in Beijing is seen by some analysts as part of Nvidia’s broader effort to manage diplomatic and commercial relationships in the face of growing geopolitical tensions.
Financial analysts have responded swiftly to the latest developments. Chris Versace, a fund manager at TheStreet Pro Portfolio, called Nvidia a “likely pawn” in broader US-China trade negotiations and lowered his price target for Nvidia shares from $175 to $150, though he maintained a “Buy Now” rating due to long-term optimism about AI and data center growth.
Other analysts have also expressed caution. DA Davidson recently reduced its Nvidia price target from $125 to $120, citing macroeconomic risks and a potential slowdown in corporate and consumer spending in the coming quarters.
With input from the Financial Times, the Street, and the Wall Street Journal.
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