Nvidia Gaming Chip Banned in China Amid Beijing's Efforts to Support Local Chipmakers

Nvidia's gaming chip has been added to Beijing's list of banned products in an effort to reduce dependence on downgraded Nvidia chips and support local chipmakers such as Huawei and Cambricon. The RTX 5090D V2 chip was reportedly included on the list during the Trump-Xi Summit, joining other restricted Nvidia products like its H200 and H20 AI chips.

Nvidia's CEO Jensen Huang expects China's market to eventually reopen to U.S. chip suppliers, according to a Financial Times report. This move could open up a revenue stream of over $14 billion for the company, as estimated by KeyBanc earlier this week.

Nvidia is set to release its first-quarter earnings after the closing bell on Wednesday, with estimates suggesting a beat-and-raise pattern is likely. The stock has gained over 18% so far this year and nearly 63% over the past 12 months, outperforming the S&P 500.