Key Points
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China has opted not to purchase H200 artificial intelligence chips from Nvidia, signaling a focus on developing its own chip industry, according to President Trump.
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This decision has affected investor confidence, leading Nvidia’s shares to drop 3.2% on Friday.
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Micron’s stock fell 5.4%, while Sandisk experienced a 1.2% rise, countering the downward trend.
China’s rejection of H200 AI chips from Nvidia is a significant development affecting U.S. semiconductor markets. The announcement came during the Trump-Xi summit and resulted in Nvidia’s shares declining by 3.2% around 12:40 p.m. ET on Friday. Micron Technology also saw a decline of 5.4%, reflecting concerns that decreased Nvidia sales could lead to diminished demand for Micron’s DRAM and NAND chips.
In contrast, Sandisk’s stock rose 1.2% despite the negative news surrounding Nvidia and Micron. This anomaly is partly attributed to Sandisk’s exclusive focus on NAND memory chips, which Nvidia still utilizes for its AI technology. The ongoing supply crunch in memory chips indicates that Sandisk remains well-positioned to sell its products, regardless of China’s decision.
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