Nvidia shares declined sharply on Tuesday, posting a 2.84% drop, with additional losses seen after the closing bell. The decline was due to the report that OpenAI, a key industry partner, has expressed reservations about the performance of Nvidia’s GPUs. Simultaneously, Nvidia is reconsidering a planned $100 billion investment in OpenAI, citing shifting sentiment between the two companies.
Nvidia’s stock move was mirrored in international markets, with the Thai Stock Exchange’s depositary receipt tracking NVDA falling by approximately 3% in Wednesday’s morning session.
The loss is expected to intensify with growing uneasiness after The Financial Times indicated that U.S. authorities are scrutinizing Nvidia’s AI chip exports to China. Those sales, centered around Nvidia’s H200 chips, have been under review for nearly two months, even after President Donald Trump authorized the exports, according to individuals with knowledge of the situation.
In China, prospective buyers have put orders for Nvidia’s H200 AI chips on hold, awaiting clarity on whether U.S. authorities will grant necessary export licenses, or what limitations might ultimately be attached to such sales, according to the Financial Times.
The outcome of the U.S. security review will be critical in determining when or whether Nvidia can resume H200 chip exports to China, with Chinese customers holding back until licensing conditions are confirmed.
