Dow, S&P 500, Nasdaq mixed as Wall Street braces for Fed decision

Nvidia (NVDA) shares fell 2% after the market open on Wednesday, as investors weighed a Financial Times report that Chinese authorities told leading tech companies in the country not to use Nvidia’s AI chips.

“The decision underscores Beijing’s push to cut reliance on US semiconductors amid intensifying AI competition with the US and the promotion of domestic chip and tool utilization,” Hedgeye Risk Management analyst Felix Wang wrote in a note after the news.

China’s internet regulator told companies to halt orders of the RTX Pro 6000D, which Nvidia custom-made for customers in the country.

Nvidia CEO Jensen Huang has repeatedly stressed the importance of the Chinese AI market, what he sees as a rapidly growing $50 billion market opportunity.

The exec lobbied the Trump administration to lift a US ban on exports of its lower-power H20 chips to China this summer in an unprecedented deal that involved Nvidia sharing its revenue from those sales with the government. Huang said in August that Nvidia is working on a less powerful version of its Blackwell chips for China.

But Huang told reporters during a briefing in London on Wednesday: “I think that we could only be in service of a market if the country wants us to be.”

“I’m disappointed with what I see, but they have larger agendas to work out, you know, between China and the United States, and I’m understanding of that, and we’re patient about it,” he added.