Nvidia stock slips on China trade fears

Published On Sep 30, 2024, 10:14 AM

Nvidia's stock fell as Chinese regulators express reluctance to buy their AI chips, urging companies to source domestically instead. This follows ongoing trade tensions between the US and China. Nvidia's sales to China have been affected, as they accounted for 14% of the company's data center revenue last fiscal year, a drop from 19% the previous year. Despite this, Nvidia is adapting by creating compliant chips for the Chinese market. Notably, Nvidia's shares have grown by 144% since the start of the year, and about 90% of Wall Street analysts rate the stock as a buy, predicting potential future increases.