The potential expansion of U.S. export restrictions on Nvidia's H20 chips to China has stirred investor concerns, impacting Nvidia's stock performance. The Trump administration's preliminary discussions on tightening these controls have raised questions about Nvidia's future market presence in China, a crucial area for its growth. This uncertainty has led to a decline in Nvidia's stock, as investors weigh the implications of these potential regulatory changes on the company's business strategy and revenue streams. The news follows reports that Chinese AI startup DeepSeek has been utilizing Nvidia's H20 and H800 chips, highlighting the significance of the Chinese market for Nvidia's AI technology.
The Graniteshares 2x Short NVDA Daily ETF (NVD) experienced a notable increase, rising 3.96% to $29.38 as of 5:00 PM on Wednesday, January 29.