TLDR
- Nvidia stock rose 1.4% in premarket trading Monday after declining 2.3% Friday, following broader market recovery
- Company is in talks to invest in AI infrastructure provider Vast Data in a funding round valuing the startup at up to $30 billion
- Nvidia received assurances it can resume H20 chip sales to China after exports were banned in April
- Bernstein predicts Nvidia’s China market share will drop to 54% in 2025 from 66% in 2024 due to local competition
- Beijing summoned Nvidia over national security concerns regarding potential backdoors in H20 chips
Nvidia shares climbed 1.4% to $175.46 in premarket trading Monday morning. The move came after the stock fell 2.3% on Friday following weak jobs data.

The early gains aligned with broader market recovery patterns. Tech stocks generally rebounded from last week’s decline.
Nvidia appears to be putting its profits to work through strategic investments. Reuters reported Saturday that the company is in talks to invest in AI infrastructure provider Vast Data.
The funding round could value the startup at up to $30 billion. Vast Data specializes in storage technology for AI data centers.
The technology enables data to move between processors more efficiently. Nvidia declined to comment on the investment reports.
Other chip stocks also gained in premarket trading. Advanced Micro Devices rose 2% while Broadcom increased 1.2%.
China Market Access Returns
The Trump administration gave Nvidia assurances last month about resuming H20 chip sales to China. These exports had been effectively banned since April 2025.
The company also announced a new “fully compliant” chip designed specifically for the Chinese market. The policy reversal was viewed as a major win for Nvidia.
The company had previously flagged billions in potential losses from the export restrictions. However, analysts warn that market dynamics have shifted during the ban period.
Growing Local Competition
Bernstein forecasts Nvidia’s AI chip market share in China will drop to 54% in 2025. This represents a decline from 66% the previous year.
Chinese AI chipmakers seized opportunities during the export restrictions. Companies like Huawei, Cambricon and Hygon gained market presence.
“U.S. export controls have created a unique opportunity for domestic AI processor vendors,” Bernstein noted. Local companies weren’t competing with the most advanced global alternatives during this period.
The localization ratio of China’s AI chip market is expected to surge. Bernstein projects it will rise from 17% in 2023 to 55% by 2027.
Some analysts remain more optimistic about Nvidia’s recovery prospects. The Futurum Group CEO Daniel Newman expressed bullish views on the company’s China bounce back.
However, he also noted potential market share erosion from customers who found success with Chinese alternatives. These relationships may have solidified during the restriction period.
Beijing Security Concerns
The Cyberspace Administration of China summoned Nvidia on Thursday. Officials raised national security concerns about the H20 chips.
Beijing questioned potential backdoors that could allow U.S. parties to access or control the chips. The meeting appeared connected to new U.S. laws requiring security mechanisms in advanced AI chips.
Nvidia denied that its chips contain any backdoors allowing external access or control. The company maintained its products meet security standards.
The scrutiny signals Beijing’s intention to intervene in the local AI infrastructure market. This aligns with China’s broader push for technological self-reliance.
Nvidia CEO Jensen Huang had previously lobbied for greater China access. He argued that export controls were inhibiting U.S. tech leadership.
Some analysts suggest the administration may shift to a “sliding scale” approach for export restrictions. This could allow greater U.S. chipmaker access as Chinese competitors advance.
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