Nvidia is under scrutiny as the Trump administration considers expanding restrictions on the sale of its chips to China, particularly targeting the H20 chips used in AI development. This potential policy shift has raised concerns about Nvidia's growth prospects in the Chinese market, a crucial area for the company's expansion. The uncertainty surrounding these discussions has already affected investor sentiment, as evidenced by the stock's decline. Nvidia's willingness to work with the administration on AI policy may offer some reassurance, but the market remains cautious amid these regulatory uncertainties.
The Direxion Daily NVDA Bull 2X Shares (NVDU) experienced a decline, dropping 3.99% to $76.59 as of 5:00 PM on Wednesday, January 29.