Nvidia Corp (NASDAQ:NVDA, ETR:NVD) shares are set to open lower on Thursday after Presidents Donald Trump and Xi Jinping failed to discuss the company's advanced Blackwell AI semiconductor during trade talks in South Korea.
Speculation ahead of the event that Washington could allow the resumption of AI chip exports to China had pushed the company’s shares up 3% the previous day, reinforcing its status as the world’s most valuable company.
On Thursday, Nvidia shares were down 0.8% in premarket trading.
Xi and Trump held high-stakes talks in Busan on Thursday aimed at determining whether the two powers can extend their fragile trade truce or slip back into confrontation.
Following the meeting, Xi said a “consensus” had been reached on trade issues, while Trump said tariffs on China would be reduced and that the dispute over the supply of rare earths had been settled, with China agreeing to resume buying US soybeans.
Trump said that the war in Ukraine was talked "for a long time, and we’re both going to work together to see if we can get something".
However, Reuters reported that exports of a special version of Nvidia's Blackwell chip were not discussed.
After the meeting in South Korea, Trump told reporters aboard Air Force One that semiconductors had been discussed and China was "going to be talking to Nvidia and others about taking chips", but added that "we're not talking about the Blackwell."
China’s commerce ministry said the consensus included the US removing the 10% fentanyl tariff on Chinese goods, suspending the 24% additional tariff for another year, and suspending its investigations into harmful trade practices, with China adjusting its countermeasures "accordingly".
The ministry said the two sides also agreed to work together on fentanyl control, expanding agricultural trade and resolving issues related to TikTok.
Trump said he believed he and Xi "have a fantastic relationship for a long period of time".
Xi, meeting Trump for the sixth time, said that it was “natural for the two leading economies of the world to have frictions now and then,” adding that both sides should “stay the right course and ensure the steady sailing forward of the giant ship of China-US relations.”
A framework trade deal was agreed in principle last weekend, following months of tension, including China’s new export controls on rare earths and critical minerals and the US imposition of 145% tariffs on Chinese goods, which Beijing countered with 125% duties.