Hua Hong Semiconductor's stock experienced a sharp decline, plummeting 5.01% during intraday trading on Thursday. The semiconductor company was among several sector peers facing downward pressure in the session.
The sell-off followed reports that NVIDIA CEO Jensen Huang unexpectedly joined U.S. President Trump's delegation visiting China, boarding Air Force One to commence the trip. This surprise development has sparked market speculation about a potential improvement in the supply of NVIDIA's H200 chips to the Chinese market, which could increase competitive pressures on domestic semiconductor manufacturers like Hua Hong Semiconductor.
Analysts note that Huang has historically lobbied the U.S. government to relax export controls on AI chips to China, successfully securing approval to sell H200 chips last year. His presence on this diplomatic trip is viewed as having significant signaling importance regarding potential shifts in U.S. chip export policy toward China.
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