NVDA Stock Slips Again as Chinese Competition Intensifies for Nvidia
After a brief rebound last week, Nvidia shares are once again under pressure as concerns over Chinese competition and inventory risks weigh.
Quick overview
- Nvidia shares are under pressure due to concerns over Chinese competition and significant inventory risks.
- The company's stock failed to maintain gains above the critical $100 level, closing lower at $108.63.
- Huawei's upcoming AI chip poses a competitive threat that could impact Nvidia's market share and pricing power.
- Despite challenges, Nvidia's participation in a White House investment event may enhance its visibility and political goodwill.
Live NVDA Chart
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After a brief rebound last week, Nvidia shares are once again under pressure as concerns over Chinese competition and inventory risks weigh heavily on sentiment.
Weak Bounce Fails to Hold as Selling Resumes
Nvidia (NASDAQ: NVDA) started the new trading week on fragile ground after failing to solidify gains above the critical $100 technical level. Although the stock briefly rebounded last week, outperforming the $100 mark during a broader sector rally, it notably lagged behind other major semiconductor names. This underperformance hinted at underlying weakness that resurfaced quickly at the start of Monday’s session.
Shares opened sharply lower, gapping down from a prior close of $111.01 to $109.70. Selling momentum persisted, dragging the price further to $108.63 by the close of regular US trading hours, with after-hours declines bringing it closer to $108.
NVDA Daily Chart – Highs Keep Getting Lower
Chinese Competition for Nvidia and Regulatory Headwinds Intensify
The immediate trigger for Nvidia’s renewed selling pressure was news that Huawei, China’s tech heavyweight, is preparing to launch a high-end AI chip designed to rival Nvidia’s existing products. This development intensifies fears that Nvidia may lose significant market share in China, a critical arena for AI hardware sales.
Compounding matters, Nvidia also announced a substantial $5.5 billion inventory write-down related to its H20 AI chips — products that were caught in the crosshairs of newly expanded US export controls to China. The write-down underscores how tightening US-China technology restrictions are not only limiting sales but are now starting to directly impair Nvidia’s balance sheet.
Huawei’s Threat and Pricing Pressure
Huawei’s potential entrance into the AI chip market could place significant pricing pressure on Nvidia. With government support and a strong domestic client base, Huawei is capable of offering competitive prices that might erode Nvidia’s premium market positioning. This competitive threat could significantly impact Nvidia’s longer-term revenue prospects if it materializes.
Glimmers of Positivity: White House Investment Event
Despite the bearish news, there was a positive development: Nvidia’s CEO is expected to participate in an upcoming White House event. According to Reuters, more than two dozen business leaders from major firms — including Nvidia, Johnson & Johnson, Hyundai Motor, Toyota Motor, and SoftBank Group — will meet with President Donald Trump to highlight fresh investment in the US economy.
This “Investing in America” initiative is part of the administration’s broader strategy to boost domestic growth in industries such as technology, healthcare, defense, and consumer goods. Nvidia’s involvement could strengthen its visibility and political goodwill at a time when international challenges are mounting.
Conclusion for NVDA: Storm Clouds Gather, but Opportunities Remain
Nvidia’s current stock struggles illustrate the increasingly complex and risky environment facing top-tier US technology firms. With competition from Chinese firms rising and export restrictions tightening, Nvidia’s earnings visibility has become cloudier. Nevertheless, opportunities for domestic expansion and stronger ties to US policymakers through events like this week’s investment summit could offer some counterbalance.
Investors will need to monitor not only corporate earnings but also geopolitical developments closely, as Nvidia’s fortunes are now tied as much to international politics as they are to innovation.
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