China KILLS Nvidia Chip Deal Just WEEKS After Trump's "Backroom" Agreement With Huang…

Some men  countries just want to watch the world burn… 

Nvidia is officially learning what it feels like to be  the world’s most valuable company and still have your lunch money stolen by two bigger kids fighting over who owns the playground.

(Source: Giphy) 

According to reports, China’s internet regulator told ByteDance, Alibaba, and other national champions to cancel orders of Nvidia’s China-only RTX Pro 6000D chip. Which, friendly reminder, is already the diet version of Nvidia’s GPUs. So yes, Beijing is basically saying: “Not only are we not buying your watered-down burger, we’re shutting down the drive-thru.”

(Source: CNBC) 

The bad part, is that just a month ago Trump cut a backroom deal letting Nvidia sell H20 chips to China in exchange for Uncle Sam pocketing 15% of the sales. (Imagine a “vig” arrangement but the bookie is the U.S. Treasury.) And now? Nothing’s shipping. 

Trump be like: 

(Source: Meme Wiki) 

As for the numbers, the receipts are as follows: China made up 13% of Nvidia’s sales last year… even though the  RTX6000D never really caught fire (Spoiler: Even Chinese tech firms said it wasn’t cost-effective before regulators banned it). With that said, eijing also just opened an anti-monopoly probe into Nvidia’s old Mellanox deal while Jensen has tripled his lobbying budget in DC, hiring 21 lobbyists in six months. Translation: When in doubt, buy the influence. 

The catch though, is that while Nvidia is still printing money thanks to Silicon Valley’s GPU hoarding fetish… China isn’t going away. Huang himself said it best: “We can only be in service of a market if the country wants us to be.” Meaning, Nvidia is a pawn in the digital Cold War, while both sides are too busy measuring their missiles to see which is bigger instead of caring about margins. 

(Source: Giphy) 

As for investors, shares have only dipped 3%, presumably because Wall Street is still glazing over the 144B backlog. But investors need to start asking: how many growth forecasts quietly assume China demand that may never come back? If the answer is “a lot,” then the most valuable company in the world might be running with one engine cut. 

Still, Nvidia’s biggest problem isn’t whether it can keep selling GPUs to China… it’s whether Jensen can keep babysitting Trump and Xi without one of them flipping the board over. Place your bets accordingly, friends. Until next time… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.