$NVIDIA(NVDA)$ π₯π¨π³π» Nvidiaβs H20 Under Fire: China Backdoor Allegations Ignite U.S.βChina Tech Showdown π»π¨π³π₯
πππ° Ahead of the next U.S. market session, Nvidia faces fresh geopolitical heat as Beijingβs state media, Yuyuan Tantian, labels its H20 AI chips βunsafe,β alleging potential backdoor access that could enable remote shutdown. The H20, developed for China after U.S. export restrictions, had already endured a brief U.S. sales ban in April before the reversal in July. Now, Chinaβs cyberspace watchdog has summoned Nvidia to address security concerns, another flashpoint in the intensifying U.S.βChina tech rivalry.
Nvidia denies any backdoor functionality, but state media is pressing for βconvincing security proofsβ to restore market trust. This is no longer just about one chip: itβs about AI sovereignty, supply chain bifurcation, and whether Nvidia can navigate between two superpowers without losing competitive ground.
Technically, NVDA enters the week in a decisive uptrend. The weekly chart shows price extended well above the 55-week EMA and riding the upper Keltner band, signalling sustained institutional momentum. The 4H chart remains locked in a steep rising channel, hugging upper volatility bands in a controlled climb. Key support sits at $168, with near-term consolidation levels at $173.60 and $181.20. A hold above these levels could see the rally continue if market participants view this as noise rather than a fundamental threat.
Institutional flows and options positioning at Mondayβs open will be critical. If funds step in as buyers, this could become a brief sentiment dip. If not, headline-driven selling could quickly widen volatility bands. This is a classic macro-meets-micro catalyst where price action will determine whether the story reshapes the trend or fades into the background.
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