Nvidia Drops 3.87% Amid White House Policy Shift

On April 10, 2025, Nvidia's stock experienced a 3.87% drop in pre-market trading.

Nvidia's CEO, Jensen Huang, recently attended a dinner at Trump's Mar-a-Lago estate, which led to the White House abandoning plans to restrict Nvidia's export of semiconductors to China. This decision came after Huang promised new investments in AI data centers within the U.S., which influenced the White House's stance. The H20 chip, specifically designed for the Chinese market, has been a significant revenue driver for Nvidia, with major Chinese tech companies placing substantial orders for it. The chip's success is evident in its use by Deepseek, a Chinese AI startup, in developing a cost-effective and efficient AI model.

Nvidia is also making strategic moves in the AI ecosystem. The company is reportedly in talks to acquire LeptonAI, an AI cloud service provider, for several billion dollars. This acquisition could further solidify Nvidia's position in the AI market. Additionally, Huang has highlighted the rapid development of AI, emphasizing that the industry's growth is far exceeding expectations. He also introduced the Blackwell Ultra chip and the upcoming Rubin architecture, both of which are designed to enhance AI capabilities.

Despite these positive developments, Nvidia faces challenges, including geopolitical risks and competition. The company's margins have been affected by the ramp-up costs of the Blackwell chip, and there are concerns about customer concentration and geopolitical risks. However, Nvidia's leadership in AI hardware and its diversified business, which includes robotics, gaming, and self-driving vehicle software, positions it well for long-term growth.