Nvidia (NASDAQ: NVDA) is trading slightly higher in Thursday’s pre-market after a volatile week driven by new policy developments from Washington and Beijing. The stock closed Wednesday at $195.21, up more than 1%, following a two-day sell-off across the AI sector.
Investors appear to be treating the recent pullback as short-term profit-taking rather than a reversal in trend. NVDA remains one of the market’s most closely watched AI plays heading into its fiscal Q3 FY 2026 earnings report later this month.
China Tightens AI-Chip Rules for State-Funded Projects
Reuters reported that Chinese regulators have instructed state-backed data centers to use only domestically manufactured AI chips. Projects under 30% completion must replace foreign processors or abandon plans to use them, while ongoing builds will face case-by-case review.
The move strengthens local players such as Huawei and Cambricon but further reduces Nvidia’s access to China’s lucrative infrastructure market. Although China’s contribution to Nvidia’s total revenue has fallen in recent years, it remains strategically important for long-term growth.
U.S. Maintains Ban on Nvidia’s “Blackwell” AI-Chip Exports
The White House said it will continue blocking sales of Nvidia’s newest “Blackwell” AI chips to China, ending months of speculation that limited exports might be approved. These chips are among the most powerful processors used to train and run artificial intelligence systems, and they are central to Nvidia’s dominance in the global AI market.
The decision highlights Washington’s effort to keep advanced U.S. technology out of China’s data centers and military-linked research. It also means Nvidia will need to rely more heavily on demand from other regions, including the United States, Europe, India, and the Middle East, markets where AI investment remains strong.
NVDA Stock Chart Analysis and Technical View
Nvidia’s daily chart shows price consolidation just below $200 following its October highs above $210. The 50-day moving average near $180 is acting as strong support, while the Relative Strength Index (RSI) around 59 signals balanced momentum.
A sustained breakout above $200 could open the door toward new record levels. Conversely, a decline below $180 may trigger deeper correction risk as traders await earnings clarity.
Nvidia Expands AI Footprint in India
This was a positive move because Nvidia became a member of the India Deep Tech Alliance that declared funding of 850 million dollars towards speeding up the progress of AI and semiconductor development. The role of Nvidia is to provide technical advice, training of its developers, and guidance to local startups.
The collaboration enhances Nvidia presence in India, an important expansion sector that will negate the lost steam in China.
CEO Jensen Huang Rejects “AI Bubble” Concerns
Nvidia CEO Jensen Huang had to counteract the argument that the artificial intelligence is a financial bubble. In a speech at London, he said that the world was only in its infancy of creating the infrastructure to enable AI, but that it was similar to the internet becoming popular 20 years ago.
In a follow-up post on X, Huang said that:
He added that while China’s government has closed access to its data-center market, Nvidia continues to power developers and enterprises worldwide.
Nvidia Stock Outlook
Nvidia remains at the center of the global AI build-out, even as policy risks cloud its short-term outlook. The company reports fiscal Q3 FY2026 earnings on November 19, where investors will focus on data-center revenue, demand for its new “Blackwell” chips, and updates on how export restrictions are affecting growth.
Beyond China, Nvidia is expanding fast in India, the Middle East, and sovereign AI projects where governments and large enterprises are building domestic computing capacity. These regions are expected to offset some of the lost momentum from China. With global spending on AI infrastructure still rising, Nvidia’s long-term position remains strong, though volatility around regulation and supply chains is likely to continue.
Most analysts remain bullish on Nvidia. Out of 64 firms covering the stock, 59 rate it a buy. Strong demand for AI chips, expanding data-center partnerships, and consistent revenue growth keep Nvidia among Wall Street’s top long-term picks.
Not necessarily. The stock is no longer cheap, but long-term growth drivers, AI infrastructure, cloud demand, and enterprise adoption, suggest there’s still upside potential for patient investors. Short-term volatility, however, should be expected.
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