Shares of Nvidia rose nearly 2 percent in after-hours trading on Tuesday evening after US President Donald Trump announced he would discuss the company with Chinese President Xi Jinping at the upcoming APEC summit.
The meeting will take place on Thursday, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) meeting, and marks the first face-to-face consultation between the two leaders since Trump’s return to the White House in January.
Trump over Blackwell: “They super duper chip”
In an interview with CNBC aboard Air Force One, Trump said Nvidia’s advanced GB200 Grace Blackwell Superchip will be part of the talks with Xi. This processor is designed for training and running large AI models.
Trump called the chip “the super-duper chip” and added:
“We are about ten years ahead of the rest of the world in advanced chips. I think we will discuss that with President Xi.”
The comments follow a period of increasing export restrictions between the United States and China, with Washington blocking sales of Nvidia’s most advanced AI chips to Chinese customers.
The fact that nowadays it mainly concerns the large tech companies on the American stock exchange is also evident from the story below from The Kobeissi Letter. Even though the S&P 500 closed yesterday at an all-time high, 80 percent of companies had to swallow a decline.
Possible relaxation of chip restrictions
Since July, Nvidia has been allowed to sell a special H20 chip to China, a slimmed-down version of its most powerful GPUs. Trump said Wednesday that he is considering making a similar arrangement for a reduced version of the Blackwell series, although he said no formal decision has yet been made.
China responded quickly and sharply. Beijing announced new rules banning domestic companies from importing any Nvidia chips.
Earlier this month, Nvidia CEO Jensen Huang stated that the company is now “100 percent out of China” and no longer has any market share there. Analysts see this exclusion as a means of pressure from China in the ongoing trade talks with the Trump administration.
Trade, tariffs and technology collide at APEC
The meeting between Trump and Xi takes place against a tense backdrop. The current trade détente between the world’s two largest economies is set to end on November 10 unless both countries agree to an extension.
Trump has repeatedly warned of 100 percent tariffs on Chinese goods from November 1 if no progress is made. At the same time, The Wall Street Journal reported that Washington is willing to cut fentanyl-related tariffs on Chinese exports by half in exchange for stricter Chinese controls on the raw materials used for the drug.
Trump also said that American agriculture and the illegal flow of fentanyl from China will also be discussed. He responded cautiously to questions about Taiwan:
“I don’t know if we’ll talk about Taiwan at all. He might want to ask about it, but there’s not much to discuss.”
Despite the tense tone, Trump called his relationship with Xi “very good” and said he looked forward to a “great conversation.”
The president thus concludes a week-long trip through Asia, during which he signed trade and mining deals with countries in Southeast Asia and Japan.
Source: https://newsbit.nl/nvidia-stijgt-in-avondhandel-trump-wil-chipbedrijf-bespreken-met-xi-jinping/
