Nvidia Stock Bounces on Huawei Warning: US-China Chip Export Ban 'Backfired'

Nvidia's stock rose 0.5% in premarket trading on Monday after CEO Jensen Huang said that the US-China chip export ban 'largely backfired.'

Huang made his comments during a panel discussion organized by the Special Competitive Studies Project, where he outlined Nvidia's setbacks in China and warned that US export curbs could be counterproductive.

Nvidia has been trying to resume sales of its AI semiconductors in China since the ban was imposed, but has faced hurdles due to Chinese import regulations and Beijing's urging of tech firms to use domestic suppliers instead.

Huang said that conceding a market of China's size would accelerate the country's push towards self-sufficiency, while continued American participation would help extend the global reach of the US AI technology stack.