While the ongoing tariff war and existing chip curbs on China have made it harder to access the latest developments in the U.S. artificial intelligence technology space, this expert says that China can bypass the restrictions to gain access to the Nvidia Corp.’s chips.
What Happened: The administration led by Joe Biden issued fresh restrictions on the exports of U.S.-developed computer chips that power artificial intelligence systems before leaving the office.
Following this, the Donald Trump's administration said that they were planning stricter curbs and also asked its key allies to match the curbs on China, reported Bloomberg.
However, despite the government’s efforts, the founder and chief investment officer of Navellier & Associates, Louis Navellier said, “China is very sneaky and will get Nvidia chips from 3rd parties.”
Nvidia has declined 22.65% in 2025, which was also fueled by DeepSeek’s emergence as the top app on iOS App Store in January. The Chinese AI startup had claimed that it used Nvidia’s H800 chips for the application. These chips complied with U.S. export controls, reported Reuters. The company also said it only cost $5.6 million for training its R1 model.
Navellier added that “China says they are good at AI, but after all the DeepSeek crashes, there appears to be a big problem.”
“It will be up to the Trump administration to punish China,” he said.
Why It Matters: Talking about the decline in Magnificent 7 stocks in 2025, he said, “Amazon and Google missed analyst expectations, so that ruined the party,” adding that “Nvidia will only get stronger on Blackwell chip sales.”
Furthermore, Navellier reiterated that the Nvidia AI Developers conference should help to turn around some technology stocks.
Price Action: The SPDR S&P 500 ETF Trust and Invesco QQQ Trust ETF, which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Tuesday. The SPY was up 0.38% to $562.73, and the QQQ also advanced 0.67% to $475.88, according to Benzinga Pro data.
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