Nvidia Drops 3.83% Despite Export Boost

On April 10, 2025, Nvidia's stock experienced a 3.83% drop in pre-market trading.

Nvidia's CEO, Jensen Huang, recently attended a high-profile dinner at Trump's Mar-a-Lago estate, which reportedly influenced the U.S. government's decision to lift restrictions on Nvidia's export of semiconductors to China. This move is significant as it allows Nvidia to continue selling its H20 chips, which are specifically designed for the Chinese market and have been in high demand from major Chinese tech companies.

Huang's attendance at the dinner, which required a $1 million donation, was strategically aimed at preventing the U.S. government from implementing export controls on the H20 chips. Nvidia's commitment to investing in AI data centers in the U.S. played a crucial role in persuading the administration to change its stance. This development is expected to have a positive impact on Nvidia's revenue, as the H20 chips have been a significant source of income for the company.

Nvidia's H20 chips, though not as powerful as their latest AI chips, are the best available for the Chinese market due to U.S. export restrictions. The chips have been used by Chinese AI startups like Deepseek to develop cost-effective and efficient AI models, further highlighting their importance in the market.

In addition to the export news, Nvidia has been actively expanding its AI ecosystem. The company is reportedly in talks to acquire LeptonAI, an AI cloud service provider, for several billion dollars. This acquisition, if completed, would further strengthen Nvidia's position in the AI market and enhance its cloud computing capabilities.

Nvidia's CEO, Jensen Huang, has also been vocal about the company's future plans, including the development of new GPU technologies and the potential widespread use of humanoid robots in manufacturing within the next five years. These advancements are expected to drive further growth for the company.