NVIDIA Stock Jumps Ahead of GTC as Congress Considers Vote to Limit H200 Chips to China

Key Insigts

• NVIDIA stock price jumped ahead of the GTC event in Silicon Valley.
• The company will unveil its new products, including its CPU.
• Senator Elizabeth Warren is pushing for legislation to ban H200 chips exports to China.

NVIDIA stock price jumped by 1.70% in the pre-market session on Monday. It jumped to $183 as investors waited for the annual GPU Technology Conference (GTC) where the company will unveil its latest technology. Still, the company is facing some major risks, including from Congress, where some leaders plan a vote on the H200 chips sales to China.

NVIDIA to Unveil Key Chips at the GTC Conference

NVDA stock price rose as traders waited for the upcoming GTC Conference, a top event where it showcases its products, especially its GPUs.

The main highlight will be Jensen Huang’s speech, where he will unveil the new products, including chips, robots, data centers, and CUDA.

According to Reuters, the company will showcase how it will integrate Groq’s solutions to its existing CUDA platform. NVIDIA bought Groq in December in a $17 billion deal.

Additionally, the company will unveil its CPU, which will make it a direct competitor to companies like AMD, Intel, and Qualcomm.

NVIDIA will also likely explain details of some of its recent investments, including in companies like Coherent, Lumentum, Nebius, and CoreWeave.

Historically, NVIDIA stock tends to do well ahead of the event and then drop when it happens as investors sell the news.

Elizabeth Warren Pushes For Congress to Stop H200 Sales to China

Meanwhile, NVIDIA stock price rally could be at risk as the Chinese sales of its H200 chips took a new twist. In a statement, Senator Elizabeth Warren said that she will force a vote on the planned approvals of H200 chips sales to China.

Together with Gregory Meeks, a New York representative, Warren hopes that the House of Representatives and the Senate will vote to block these sales to the country. They argue that these chips will enable Chinese companies to build more advanced tools that may surpass those of the United States. Also, there is concern that some of this technology will end up in China’s military.

China is a potentially large market for NVIDIA’s chips, with Jensen Huang predicting that the total market would be worth over $54 billion a year. However, Washington plans to cap orders from China to about 75,000 chips per customer.

Chinese companies like ByteDance have found a workaround to access these chips. As we wrote last week, the company is working with a Malaysian data center operator that has access to NVIDIA’s Blackwell chips to build its data center. More companies will likely use this approach to access the most advanced chips to train their AI models.

The other major risk is that Donald Trump may not travel to China later this month. Trump threatened this as a way to pressure China to help the US secure the Strait of Hormuz as the US-Iran war continues.

NVIDIA is also facing some major challenges, including the fact that its biggest clients are considering launching their ASIC chips. This includes companies like Microsoft, Google, Amazon, and Meta Platforms. OpenAI has also inked a major deal with Broadcom that will see it launch its own chips.

NVIDIA Stock Price Technical Analysis

The daily chart shows that the NVDA stock price rose slightly on Monday and pared some of the losses it suffered on Friday, when it dropped by over 3%.

On the positive side, the stock remains above the ascending trendline that links the lowest levels since September last year.

It is also oscillating at the 50-day and 100-day Exponential Moving Averages (EMA) and is slightly above the Ultimate Support of the Murrey Math Lines tool.

Therefore, the stock will likely remain in this range in the coming days. A strong bullish breakout will be confirmed if it moves above the important resistance level at $195x its highest point this year.

On the other hand, a drop below the ascending trendline will invalidate the bullish outlook and point to more downside, likely to $150.

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