Key Takeaways
- Nvidia CEO Jensen Huang is set to meet with President Donald Trump at the White House Friday, Bloomberg reported, after a wild week for the chipmaker’s stock.
- Shares have lost over 12% this week after the emergence of a sophisticated, lower-cost AI model from Chinese startup DeepSeek spurred a reckoning on Wall Street about AI spending.
- Analysts have largely remained bullish on the chipmaker’s stock, suggesting the market’s reaction may have been overblown.
Nvidia (NVDA) CEO Jensen Huang is set to meet with President Donald Trump at the White House, Bloomberg reported Friday, after a wild week for the chipmaker’s stock.
Shares wavered between gains and losses near $125 in afternoon trading Friday, having lost more than 12% of their value this week after the rapid rise of Chinese AI startup DeepSeek rattled markets.
The surging popularity of an app from DeepSeek, which claimed it developed an AI model rivaling the performance of American competitors for a fraction of the cost, spurred a reckoning on Wall Street about the competitiveness of American AI leaders and their spending on tech, sending shares of Nvidia and other AI stocks into a tailspin earlier in the week.
Still, analysts have largely remained bullish on the chipmaker’s stock, with Bank of America telling clients Wednesday they “view the recent selloff as an enhanced buy opportunity.” Analysts at Bernstein, Citi, Wedbush, Raymond James, and elsewhere were also among those that suggested the market’s reaction may have been overblown.
Raymond James and Bank of America added that they expect competition from China could push Big Tech companies like Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL) to spend even more on AI, to the benefit of Nvidia, Broadcom (AVGO), and other AI chipmakers.
In earnings calls this week, executives from Microsoft and Meta stood by their plans to spend billions of dollars this year on AI infrastructure.
Huang’s meeting at the White House also comes following reports the Trump administration could be considering further tightening restrictions on sales of advanced U.S. chips to China.
Nvidia reported in November that sales to China accounted for more than 15% of the chipmaker’s revenues in its fiscal third quarter. Nvidia is set to report its fourth-quarter results on Feb. 26.