Trump Leaves ‘Super-Duper’ Nvidia Blackwell Chip Out Of Talks In Xi Meeting: Report

• Nvidia faces headwinds in China due to U.S. restrictions on the export of high-performance chips to the country.
• China has taken a hard stance in recent months, discouraging government enterprises and establishments from using Nvidia’s China-specific H20 chip.
• Nvidia became the first company to hit a $5 trillion valuation following the stock’s stellar rally this week.

President Donald Trump reportedly kept Nvidia (NVDA) out of his talks with his Chinese counterpart, Xi Jinping, even as he flaunted progress, including a 10% cut to Fentanyl tariffs and a rare-earth deal that would run for a year.

Nvidia, which enjoys a near-monopoly position in the artificial intelligence (AI) chip market, faces headwinds in China due to U.S. restrictions on the export of high-performance chips, including its most advanced Blackwell chips, to the country. Notwithstanding the China risk, Nvidia stock is on a record run, pushing the company's market capitalization above $5 trillion on Wednesday.

Trump Deprioritizes Nvidia?

Speaking to reporters aboard Air Force One before he departed from South Korea, Trump said, “We're not talking about the Blackwell,” according to a Reuters report. The president’s comments came after he met with Xi on the sidelines of the Asia-Pacific Economic Cooperation (APEC) meeting held in South Korea.

The president, however, said he had discussed semiconductors with Xi, adding that China would be talking with Nvidia and others about taking their chips. It isn’t clear whether he was referring to the stepped-down version of Nvidia’s AI chip, namely the H20, manufactured exclusively for the Chinese market.

China has taken a hard stance against Nvidia in recent months, discouraging government enterprises and establishments from using the H20 chip. Trump’s Nvidia comments come as a surprise, as a day ago, he heaped high praises on Nvidia’s “super-duper” Blackwell chip and said he might speak to Xi about it.

Nvidia Cements AI Dominance

In his GTC Washington keynote address, Nvidia CEO Jensen Huang said the company has a $500 billion backlog in Blackwell and Rubin revenue through 2026. Rubin is the company’s next-generation AI chip. Wedbush analyst Daniel Ives called Nvidia’s GPUs a critical part of the AI ecosystem. 

More importantly, despite the stock rally, analysts believe Nvidia’s valuation is attractive. A Cantor analyst said, notwithstanding AI bubble concerns, Nvidia is “too inexpensive to ignore,” given its stock trades at only 21 times Cantor’s updated earnings-per-share (EPS) upside of $9-$10.

Nvidia stock has gained 54% this year. In premarket trading on Thursday, the stock is up about a percent.

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