Nvidia Shares Slump Again -- CEO Confirms No China Blackwell Chip Talks

This article first appeared on GuruFocus.

Nvidia's stock continued to slip on Friday, wrapping up a rough week for the world's leading AI chipmaker. Shares fell about 2% on Friday, following a 3.7% drop on Thursday and a more than 7% decline over the past five sessions.

Investors appear uneasy about Nvidia's exposure to China and the sustainability of massive AI infrastructure spending. Adding to the caution, OpenAI CEO Sam Altman clarified that the company isn't seeking government guarantees or bailouts for its $1.4 trillion AI data center investments, after earlier comments from its finance chief drew attention.

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Despite recent weakness, Nvidia still holds roughly a 40% gain for the year. Analysts such as LPL Financial's Thomas Shipp say optimism around AI's long-term potential remains intact, even as costs and valuations rise.

Nvidia CEO Jensen Huang also said during a visit to Taiwan that there were no active discussions about selling the company's new Blackwell AI chips to Chinese clients. The company currently does not anticipate material revenue from China, which it says could imply a quarterly sales shortfall of roughly $2 billion to $5 billion.

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