NVDA: Nvidia Stock Sheds 9% to Languish Near Six-Month Low. Should You Buy the Dip?

Chinese traders have figured out a way to circumvent US export restrictions and have loaded up on Nvidia’s chips.

💸 Nvidia Shares Tumble 9%

• Nvidia stock NVDA washed out about $250 billion from its market value on Monday after the Wall Street Journal published some spicy news. The paper said that Chinese buyers have been smuggling Nvidia’s flagship chip, Blackwell, in boatloads despite US export controls.
• The latest artificial-intelligence chip has been circumventing restrictions through third-party traders in nearby regions who promise delivery within six weeks.

😎 Looking to Get Onboard?

• The grey-market activity undermines America’s intention to stay the dominant power in the AI space by gatekeeping who gets access to Nvidia’s game-changing products. Export controls by Washington were first introduced in 2022 as a way to stop China from training AI models.
• What’s more, the recent splash made by DeepSeek has resulted in more foreign companies eagerly looking to join the technological rivalry with their own AI bots.

⚙️ Nvidia Hits September Lows

• Against this backdrop, shares of Nvidia are languishing at a six-month low of around $114 a pop. The tech titan’s latest earnings report last week didn’t help the stock despite churning out another record-setting quarter in revenue.
• The million-dollar question: Should you buy the dip? No crystal ball here — Trump’s latest tariff slaps on China forced a retaliatory response and the trade wars are now in full swing. Nvidia’s volatile zig-zagging is expected to go on for a while.