This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) shares slid about 2% on Wednesday morning after a delay in U.S. approval for China chip exports renewed investor concerns.
The stock fell to around $179 as traders reacted to uncertainty over when Nvidia can resume large-scale sales of its H200 artificial-intelligence chips to China.U.S. authorities are still reviewing export license applications on national security grounds, even after earlier signals that some shipments could restart. The extended review has led Chinese customers to postpone orders until clearer guidance is issued.
China has been a key growth market for Nvidia’s data-center business. Chief Executive Jensen Huang has said demand for advanced AI chips there could be significant over time. However, some suppliers linked to the H200 program have slowed production while the approval process remains unresolved.
Analysts said the delay adds regulatory risk at a time when Nvidia’s valuation reflects strong expectations for AI spending. Any setback in access to overseas markets could weigh on near-term sentiment.
Morgan Stanley said recent share weakness may be overstated, citing steady industry demand and the possibility of stronger earnings if export approvals are eventually granted.