Huawei's GPU advancements & U.S.-China trade tensions could impact Nvidia Corporation's Q1 FY 2026 outlook. Click here to find out why NVDA stock is a Hold.

Nvidia (NVDA) stock is likely to gain or lose as much as 7.4% the day after the AI chipmaker reports quarterly earnings results May 28, options traders tracked by Bloomberg predict. The 7.4% figure from Bloomberg consensus data is lower than the average 11.

The chipmaker wants to attract top AI talent in China as it faces tightening U.S. restrictions and challenges from homegrown chipmakers

Jensen Huang, the chipmaker’s top executive, said the attempt to cut off the flow of advanced A.I. chips spurred Chinese companies to “accelerate their development.”

Nvidia Corp. chief Jensen Huang blasted the “failure” of US restrictions intended to help contain China’s technological ascent, calling on the White House to lower barriers to AI chip sales before American firms cede that market to up-and-coming rivals such as Huawei Technologies Co.

The now-scrapped rule would have limited the number of advanced artificial intelligence chips NVIDIA could sell to certain countries.

While scrapping the AI Diffusion Rule, the U.S. government has banned Huawei's Ascend AI processors as they allegedly use American technologies without authorization.

U.S. export controls on artificial intelligence chips to China were "a failure" as they have cost American companies billions of dollars in lost sales, Nvidia Chief Executive Jensen Huang said on Wednesday.