NVIDIA (NASDAQ: NVDA) Stock Decline: Impact of Escalating US-China Tech Tensions

Latest trends in NVIDIA stock price

As of September 18, 2025, NVIDIA’s stock price is $170.29, down about 2.66% from the previous trading day. In pre-market trading, the stock price briefly fell more than 3%, mainly influenced by news of the Chinese government’s restrictions on purchasing its AI chips. Recent stock performance shows that NVIDIA is facing dual pressures from geopolitical factors and market sentiment.

China bans the purchase of NVIDIA AI chips

China’s internet regulators have ordered companies, including large tech firms, to stop purchasing NVIDIA’s RTX Pro 6000D AI chips and to cancel existing orders. This move aims to reduce dependence on American technology, highlighting the tensions between China and the United States in the tech sector.

NVIDIA CEO Jensen Huang expressed disappointment but emphasized that the company will comply with regulations in various countries. He pointed out that the company has excluded the Chinese market from its financial forecasts to address current geopolitical challenges.

Key points investors should pay attention to

• The market prospects in China are limited.

The Chinese government’s ban may affect NVIDIA’s business expansion in the Chinese market, especially in the AI chip sector. The Chinese market has been an important source of growth for NVIDIA, and it may bring sales pressure in the short term.

• stock price volatility risk

The uncertainty of the technology friction between China and the United States may lead to continued fluctuations in NVIDIA’s stock price, and investors need to cautiously assess market risks. In the short term, the stock price may experience rapid ups and downs, which is particularly significant for speculative investors.

• The rise of local alternatives

Chinese local chip manufacturers are accelerating the research and development of AI chips, which may pose competitive pressure on NVIDIA in the future. This also urges NVIDIA to seek new market opportunities and partners to maintain its global competitiveness.

Future Outlook

Despite facing challenges, NVIDIA still possesses significant technological advantages in the fields of AI, data centers, and graphics processing. If the company can effectively respond to geopolitical changes and develop new markets and customers, it will have the opportunity to maintain its leadership position in the global technology industry. Investors need to pay attention to NVIDIA’s layout in emerging markets and potential cooperation and acquisition opportunities, which could become important drivers of stock prices in the future.