Nvidia stocks fluctuated with trading announcements.

Nvidia (NASDAQ:NVDA) shares fell about 2% on Thursday, losing some of their previous gains, after U.S. President Donald Trump stated that he had not discussed the approval of the company’s advanced Blackwell AI chips with Chinese President Xi Jinping.

GuruFocus detected 8 warning signs for Nvidia.

Trump emphasized in a statement to reporters that the semiconductor sector is generally on the rise, but that there were no discussions regarding Blackwell, which reduced investors' expectations for a policy change in the short term. This statement came after the recent increase in Nvidia’s market value. The company had briefly surpassed the $5 trillion valuation threshold, leading investors to price in strong demand for AI processors.

The current U.S. export controls already limit the shipment of the strongest accelerators to China, which restricts access to Blackwell-class chips unless official policy changes occur.

Nvidia CEO Jensen Huang stated that stricter regulations could accelerate China's domestic chip development efforts and reshape competition in the region. This dynamic is considered a development that could affect investors' long-term growth assumptions.

While market participants continue to assess whether diplomatic discussions will translate into commercial access, it is important to remember that Nvidia’s overall AI demand story is solid, but subject to geopolitical risks.