Marvell Technology Inc (NASDAQ: MRVL) rallied as much as 10% on Wednesday morning after announcing a strategic alliance with Rebellions Inc – a South Korean artificial intelligence (AI) chipmaker.

The new partnership aims at building custom AI infrastructure tailored to regional and sovereign-backed initiatives across Asia-Pacific and the Middle East.

Marvell stock has been in a sharp uptrend in recent months, and is currently up over 70% versus its year-to-date low in the first week of April.

Why Rebellions partnership is significant for Marvell stock

Rebellions partnership marks a strategic pivot for MRVL toward highly specialized AI systems.

Instead of relying on generic GPU-based architectures, it aims at co-developing domain-specific accelerators using Marvell’s advanced chip packaging and interconnect technologies.

The collaboration aligns with a broader trend in artificial intelligence infrastructure, where regional governments and cloud providers seek scalable, energy-efficient solutions tailored to local needs.

By tapping into sovereign-backed initiatives, Marvell gains access to new markets and longer-term contracts – which could translate to a higher MRVL share price over time.

In short, this collaboration reinforces Marvell’s reputation as a custom silicon provider, positioning it to benefit from the growing demand for AI inference at scale.

Why Microsoft earnings could give MRVL shares a boost?

Marvell shares are rallying this morning also because investors believe Microsoft Corp’s earnings on Wednesday, after the bell, will prove a tailwind for the Wilmington-headquartered firm.

MSFT could highlight continued strength in cloud services and artificial intelligence integration– and since MRVL supplies custom silicon for data center applications, strong results from Microsoft could signal rising demand for its infrastructure solutions.

Investors often view Microsoft performance as a bellwether for enterprise tech spending, and any upside surprise could reinforce bullish sentiment around Marvell’s exposure to hyperscale cloud providers.

With AI workloads expanding and custom chips gaining traction, MSFT earnings could serve as indirect validation of the firm’s strategic direction, especially in the context of its recent partnership with Rebellions.

Is it too late to invest in Marvell Technology Inc?

While MRVL stock has already experienced a significant rally since early April, it may still have further upside for long-term investors.  

Marvell offers robust fundamentals, reflecting confidence in its AI and data centre roadmap. Its custom infrastructure solutions position it well in a market increasingly favoring specialized chips over standardized GPUs.

The company’s strategic partnerships and fast-growing addressable market suggest Marvell stock isn’t just riding a news cycle – it’s building a foundation for sustained growth.

Investors could also take heart in the fact that Wall Street currently has a consensus “buy” rating on MRVL shares with a mean target of about $90 (according to data from the Wall Street Journal) indicating potential upside of another 10% from current levels.

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Peloton Interactive Inc (NASDAQ: PTON) soared nearly 20% on Wednesday after a senior UBS analyst issued an ultra-bullish note in its favour.

In her research note this morning, Arpine Kocharyan upgraded the connected fitness company to “buy” and raised her price target to $11 – indicating potential upside of over 80% on its previous close.

Peloton stock has gained rather significantly since early April but, even including today’s rally, is currently down some 8.0% versus its high on June 9^th.

What could drive Peloton stock up in the second half of 2025?

UBS analyst turned positive on PTON shares today mostly because “we’re seeing better data trends for the company in terms of traffic and active users.”

Arpine Kocharyan is convinced that net subscriber decline will stabilise in the coming year (FY26) – which she believes will help unlock significant further upside in Peloton stock.

According to her, interactive visits came in flattish on a year-over-year basis in June – a meaningful improvement from down 11% in May.

Moreover, “active users have turned positive in May/June after declines since beginning of the year” as well, the analyst told clients in her research note.

UBS is constructive on Peloton Interactive Inc because continued topline growth and executives’ commitment to cutting costs could also drive upside in the company’s 2026 EBITDA.

PTON shares may rally post Q2 earnings on August 7^th

Peloton has been actively engaged in reducing its showroom footprint to lower its debt in 2025.

The exercise equipment maker is scheduled to report its second-quarter financial results on August 7^th.

Consensus is for it to lose 6 cents on a per-share basis in its fiscal Q2, narrower than the 8 cents a share it lost in the same quarter last year.

If the Nasdaq-listed firm managed to beat expectations next week, its earnings release could prove a major tailwind for PTON stock price to gain further in the second half of this year.

According to UBS analyst Kocharyan:

“We estimate +11-12% pricing increase in connected fitness subscription could drive roughly $90M-$100M of annualized revenue uplift, net of impact from higher churn, and upside to PTON’s $200M+ run rate cost saves target, with PTON also annualizing run rate cost saves in FY′26.”

Is it worth investing in Peloton Interactive Inc today?

All in all, if Peloton posts a better-than-expected report on August 7th, it could validate the UBS analyst’s bullish thesis and reignite investor confidence.

With improving user metrics, cost-cutting momentum, and potential pricing power, shares of the connected fitness company may be poised for a meaningful rebound – making the coming weeks pivotal for PTON stock trajectory.

What’s also worth mentioning is that UBS is not the only Wall Street firm that’s keeping bullish on Peloton shares ahead of the company’s upcoming Q2 earnings.

The consensus rating on Peloton Interactive currently sits at “overweight” with the mean target of about $9.40, indicating potential upside of another 30% from current levels.

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Shares of Harley-Davidson Inc. surged as much as 24% on Wednesday—their biggest gain since October 2020—after the iconic motorcycle manufacturer announced a major monetization effort involving its finance arm.

The company revealed plans to sell a nearly 10% stake in Harley-Davidson Financial Services (HDFS) and more than $5 billion in retail loans to investment giants KKR & Co. and Pacific Investment Management Co. (PIMCO).

While the deal boosted investor sentiment, Harley-Davidson also reported disappointing second-quarter results, with sharp declines in revenue, motorcycle shipments, and earnings, driven in part by tariffs and high borrowing costs.

At the time of writing, Harley Davidson shares were trading 16.58% higher at $26.76.

Finance unit stake sale unlocks capital for growth

Harley-Davidson said in a statement that KKR and PIMCO will each acquire a 4.9% common equity interest in HDFS, alongside the purchase of retail loan receivables at a premium to face value.

The transaction is expected to unlock approximately $1.25 billion in cash for the company.

Harley plans to allocate those funds toward reinvestment in its core business, debt reduction of around $450 million, and approximately $500 million in returns to shareholders, including a resumption of share buybacks.

The company had suspended repurchases during the second quarter due to tariff uncertainty.

CEO Jochen Zeitz said the partnership would provide a “long-term stable funding mechanism” for the finance unit while maintaining continuity for customers and dealers. Importantly, Harley-Davidson will retain control of HDFS.

The announcement came on the same day as Harley Davidson announced their second-quarter earnings release.

Tariffs and economic headwinds pressure Q2 results

Despite the positive market reaction to the finance deal, Harley-Davidson’s second-quarter financial results underscored the challenges the company continues to face.

Revenue fell 19% year-over-year to $1.3 billion, missing analyst expectations, while earnings per share declined 46% to 88 cents.

Global retail motorcycle sales dropped 15%, including a 17% decline in the critical North American market.

Motorcycle shipments plummeted 28% from the prior year, a drop attributed to weakening demand amid elevated interest rates and tariff-related production cuts.

The company reported $17 million in tariff costs during the first half of 2025 and forecasted a full-year impact of up to $85 million.

These costs shaved 125 basis points off Harley’s second-quarter operating income margin, according to Chief Financial Officer Jonathan Root.

CEO Zeitz highlighted ongoing engagement with governments and expressed “cautious optimism” that future trade agreements could reduce the impact of tariffs on the company’s operations.

However, he acknowledged that global trade uncertainty and weak consumer sentiment remain significant hurdles.

Strategic initiatives signal path forward

To combat these headwinds, Harley-Davidson is pursuing several strategic initiatives.

The company plans to launch a new sub-$6,000 motorcycle next year to attract cost-conscious buyers and broaden its customer base.

Additionally, Harley is implementing a new efficiency program that leverages artificial intelligence to drive productivity and cost savings.

The company is also in a leadership transition, with Zeitz having announced his intention to resign in April. A CEO search is currently underway.

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Bitmine Immersion Technologies Inc (BMNR) rallied more than 10% today following news that influential investor Cathie Wood trimmed her stake in Block Inc (XYZ) to load up on BMNR.

The founder and chief executive of Ark Invest spend over $15 million on buying 477,498 Bitmine shares across three of her flagship exchange-traded funds (ETFs) on July 30^th.

BMNR stock is currently trading at about 8x its price last month, but is still down well over 70% from its high of $135 after announcing a strategic pivot to an ETH treasury strategy earlier in July.

Why is Wood’s purchase significant for Bitmine stock?

Wood’s investment in BMNR shares signals support for the company’s recently adopted Ethereum-centric strategy.

Late last month, Bitmine Immersion appointed Fundstrat’s Tom Lee as its chairman and announced plans of beginning to stake and accumulate ETH for the long term.

Cathie Wood’s vote of confidence lends immediate credibility to the firm’s transformation, which may draw more institutional interest in Bitmine stock in the second half of 2025.

It also echoes investor’s history of backing disruptive technologies before mainstream acceptance, reminiscent of early plays on Tesla and Coinbase.

Wood’s purchase of BMNR stock arrives only hours after the LA-headquartered firm announced plans of repurchasing up to $1 billion worth of its shares – indicating management’s belief that Bitmine is undervalued at current levels.

Stock buybacks are often seen as positive because reducing the total number of shares outstanding tends to boost a company’s earnings per share (EPS) and lifts ownership percentage of its existing shareholders as well.

Why BMNR shares are still risky to own

Despite recent enthusiasm, Bitmine stock volatility poses clear risks. The stock is trading at nearly 8x its June lows, raising concerns of speculative froth, especially as it remains down over 70% from its $135 peak.

Bitmine’s new crypto-centric strategy, though innovative, is tightly correlated with Ethereum’s price action, exposing the firm to broader crypto market swings.

Regulatory uncertainties around crypto treasury holdings and staking activities could further complicate execution and weigh on upside in BMNR shares.

Meanwhile, substantial selling following the July pivot hints at profit-taking rather than long-term conviction.

For investors chasing momentum, the current valuation may offer limited margin for error if ETH retraces or sentiment shifts.

All in all, caution is warranted in playing this crypto stock in the second half of 2025.

Is it worth investing in Bitmine Immersion?

Investors should practice caution in buying Bitmine shares also because it currently receives limited coverage from Wall Street analysts.

Limited Wall Street coverage is a red flag because it reduces institutional visibility and investor confidence.

Fewer analyst reports mean less scrutiny on financials and strategic pivots – important for transparency.

It also narrows the pool of buy-side recommendations, which can dampen liquidity and price discovery.

In volatile sectors like crypto, lack of coverage leaves investors navigating risks without traditional guidance, potentially hindering broader adoption of the stock.

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Asia-Pacific stock markets began Thursday’s session with a mixed and cautious performance, as investors assessed the impact of new US tariffs on South Korea and eagerly awaited the outcome of the Bank of Japan’s latest policy meeting.

While some regional bourses managed to eke out gains, the overall mood was one of uncertainty, with Indian benchmarks like the Sensex poised for a lower start.

A key focus for investors this morning is the fallout from US President Donald Trump’s announcement of a blanket 15% tariff on South Korea’s exports to the United States.

This latest move in the ongoing trade saga has put South Korean markets under a microscope. As of 8:10 a.m. Singapore time, the Kospi index in South Korea had fallen 0.14%, while the small-cap Kosdaq was flat.

Japanese markets are also in the spotlight, with the country’s central bank widely expected to hold its short-term interest rates steady at 0.5% for the fourth consecutive time when its two-day policy meeting concludes later today.

While pre-market futures had suggested a higher open for Japan, the Nikkei 225 benchmark was up a modest 0.21% in early trade, with the broader Topix index ticking up 0.28%.

Elsewhere in the region, Australia’s S&P/ASX 200 benchmark fell 0.53%. Futures for Hong Kong’s Hang Seng index, however, had pointed to a weaker open.

The Fed’s stance: a cautious wait-and-see on tariffs

Investors are also still digesting recent comments from US Federal Reserve Chair Jerome Powell, who has made it clear that the central bank is in a holding pattern as it assesses the impact of President Trump’s tariff policies.

Powell stated that the Fed can afford to keep its interest rate steady while waiting to see if these tariffs push up inflation.

“Higher tariffs have begun to show through more clearly to prices of some goods, but their overall effects on economic activity and inflation remain to be seen,” Powell said.

He suggested that a “reasonable base case” could be that the effects on inflation will be “short lived.” However, he also issued a caution, noting that the levies could cause inflationary changes that are “more persistent.”

“Our obligation is to keep longer term … inflation expectations well anchored and to prevent a one-time increase in the price level from becoming an ongoing inflation problem,” Powell affirmed.

For the time being, we’re well positioned to learn more about the likely course of the economy and the evolving balance of risks before adjusting our policy stance. We see our current policy stance as appropriate to guard against inflation risks.

Indian markets brace for a gap-down start

Indian stock market benchmark indices, the Sensex and Nifty 50, are likely to open lower on Thursday.

The negative sentiment is being driven by news that US President Donald Trump has slapped 25% tariffs on Indian goods, a development that is expected to weigh heavily on the market.

The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index, with Gift Nifty trading around the 24,673 level, a significant discount of nearly 196 points from Nifty futures’ previous close.

This follows a session on Wednesday where the Indian stock market had ended higher, with the Nifty 50 closing above the 24,800 level.

The Sensex had rallied 143.91 points, or 0.18%, to close at 81,481.86, while the Nifty 50 settled 33.95 points, or 0.14%, higher at 24,855.05.

Nissan shares rebound despite reporting a loss

In corporate news, shares of Japanese automaker Nissan Motor surged by as much as 4.9% on Thursday, a surprising reversal from losses seen in its previous two sessions.

This rally came even as the company reported an operating loss of 79,124 million yen ($530.17 million) for its first fiscal quarter ended in June. The loss was attributed to lower sales volumes, adverse exchange rate movements, and the very U.S. tariffs that are currently unsettling the market.

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Rolls-Royce Holdings published strong financial results, mirroring those of its top rivals like GE Aerospace, Safran, and GE Vernova. The results demonstrated the ongoing demand across its three divisions, which are seeing strong tailwinds. Here are the top takeaways in its earnings.

Rolls Royce earnings takeaways

In a statement, Rolls-Royce said that its revenue jumped by 13% in the year’s first half to £9.05 billion. Most notably, the closely watched operating profit metric surged by 50% to £1.75 billion. This led to a 76% surge in its earnings per share. Tufan Erginbilgic, the CEO said:

“We now expect to deliver underlying operating profit of £3.1bn-£3.2bn and free cash flow of £3.0bn-£3.1bn this year. This builds further conviction in our mid-term targets, of underlying operating profit of £3.6bn-£3.9bn and free cash flow of £4.2bn-£4.5bn.”

These results are a significant improvement for a company whose Ergibilgic called a burning machine shortly after his tenure started. He has slashed cost across the business, exited some of its unprofitable businesses, and is working on a return to narrow-body aircraft engines. 

Analysts note that luck has also played part during his tenure. He became CEO as the civil aviation business was emerging from the pandemic, leading to a surge in flying hours. Its civil aviation revenue jumped by 17% in the first half to £4.7 billion, while its profit rocketed up by 63% to £1.19 billion.

Read more: Will the Rolls-Royce share price hit 1,000p after its earnings?

Additionally, his tenure coincided with the start of the war in Ukraine and soaring tensions between the United States and China. These tensions led to a significant increase in defense spending by most western countries. 

Its defense revenue rose slightly to £2.22 billion, whole the operating profit dropped slightly to £342 million. Its free cash flow jumped by 40% to £327 million, while its order backlog jumped by 120% to £18.8 billion.

Finally, the power segment coincided with the artificial intelligence (AI) boom that pushed power spending by data centers much higher. Its power revenue jumped by 20% to £2.04 billion, with its backlog rising by 23% to £5.6 billion. 

The other key takeaway in its results is that its cash position has improved, as it jumped to £1.1 billion. It now expects to pay its bond maturity of £ 1b billion from its cash. 

As a result, the company is targeting a dividend payout of between 30% and 40% of its underlying profits. It is also continuing with its £1 billion share buyback. 

Implication for the Rolls-Royce share price

Rolls-Royce share price chart | Source: TradingView

These results came at a time when the Rolls-Royce stock price has been in a strong bull run. It has jumped from the year-to-date low of 550p to over 1,000p. 

The stock remains above the 50-day and 100-day Exponential Moving Averages, a sign that bulls are in control. Therefore, the stock will likely continue rising as bulls target the key resistance at 1,100p. 

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US President Donald Trump’s decision to exclude refined metal from his proposed import tariff led to an immediate and significant drop of over 19% in COMEX copper.

Wednesday saw the most significant intraday decline on record, with prices dropping by 19%, though they later recovered some of these losses.

At the time of writing, the three-month copper contract on the London Metal Exchange was at $9,679 per ton, largely unchanged from the previous close.

Tariff impact and market reaction

Effective August 1, a 50% levy will be imposed on imports of semi-finished copper products. 

The 50% levy will be imposed on copper pipes, wires, rods, sheets, and tubes, as well as copper-intensive goods such as pipe fittings, cables, connectors, and electrical components. 

The White House statement clarified that this levy will not apply to imports of copper ore, concentrates, mattes, cathodes, or anodes.

Before the announcement, copper prices in the US were trading at a 28% premium compared to LME prices, as the market had anticipated the upcoming tariff.

“We now expect the Comex-LME premium to collapse from the current levels,” Ewa Manthey, commodities strategist at ING Group said in a note. 

Record shipments of copper arrived at American ports after Trump first suggested a tariff on copper imports in January.

From January to May, US refined copper imports saw a substantial year-over-year increase of almost 130%.

Inventory surge and future outlook

Meanwhile, at COMEX warehouses, copper inventories have reached a 21-year high.

The US currently holds surplus inventory, which may now be re-exported.

Manthey said:

This will be bearish for LME prices with more copper now showing up in LME warehouses.

The White House announced that the copper tariff, enacted under Section 232 of the Trade Expansion Act, will not be added to the separate charges imposed on automobile imports earlier this year.

For products subject to auto tariffs, the import tax on vehicles takes precedence over the copper duty.

In the US, Trump utilised the Defense Production Act, a law empowering the president to mandate increased production of materials vital for national security. 

This act was invoked to stipulate that a quarter of all high-quality copper scrap and raw copper produced domestically must be sold within the country.

The proportion of specific raw copper materials required for US sale is set to rise to 30% by 2028, and further to 40% in 2029.

“Copper prices should now move beyond the recent focus on US import tariffs that has dominated sentiment for most the year,” Manthey said.

Prices have been rising this year largely because the market has been front-running the tariff policy and not because the demand picture has been improving or because the supply has actually been tightening.

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European stock markets began Thursday on a positive note, with the regional Stoxx 600 index climbing higher as investors digested a deluge of corporate earnings reports from some of the continent’s largest companies.

This upbeat start, supported by a strong showing from US tech giants, comes amidst a complex global backdrop of shifting trade policies and central bank decisions.

On what is one of the busiest days of the year for corporate results, several heavyweight regional companies have already reported, with many providing a positive surprise.

The pan-European Stoxx 600 Index was 0.4% higher by 8:18 a.m. in London. Technology stocks were among the biggest gainers, finding a tailwind from positive after-hours earnings reports on Wednesday from US megacaps Microsoft Corp. and Meta Platforms Inc.

French bank Societe Generale SA was a standout performer, gaining 6.5% after it boosted its planned investor payouts and improved its profitability guidance.

This was part of a broader, encouraging trend. “As far as I can tell from the flurry of publications, the overall picture is rather positive, with a good chunk of beats,” Karen Georges, a fund manager at Ecofi, told Bloomberg.

It’s really the good results in the US which are providing a tailwind for markets.

However, not all earnings news was positive. Anheuser-Busch InBev dropped a staggering 11% after the world’s biggest brewer reported that it had sold less beer than expected during the second quarter. 

ArcelorMittal SA, the world’s number two steelmaker, dropped 3.5% after it cut its forecast for steel demand outside of China. In a bright spot for the UK market, Rolls-Royce Holdings Plc rose 11% after it raised its outlook for the year, as the aircraft engine maker benefited from its savings program and strong demand across the aerospace industry.

A flood of other major earnings reports are also due today from companies including Unilever, Shell, London Stock Exchange Group, BMW, Renault, Sanofi, and LVMH.

Trade policy twists and Central Bank watch

The markets are also contending with the latest developments in US trade policy.

In a surprising move, copper prices were little changed on the London Metal Exchange on Thursday—following a collapse in New York—after US President Donald Trump shocked the metals world by exempting the most widely traded forms of copper from his hotly anticipated import tariffs.

This was a significant reversal from his earlier announcement of a 50% tariff on some copper imports, which had sent mining stocks lower.

In other trade news, President Trump said he had reached a deal with South Korea that would impose a 15% tariff on its exports to the US and see Seoul agree to $350 billion in US investments. South Korean stocks, however, dipped as investors appeared to shrug off the deal.

Central banks also remain a key focus. The US dollar dropped, sliding from its highest level since May, after Federal Reserve Chair Jerome Powell on Wednesday said that no decision had been made about easing monetary policy in September. US Treasuries rose across the curve after slumping in the prior session.

The Japanese yen held its gain after the Bank of Japan kept its benchmark rate unchanged while boosting its inflation outlook, a decision that was correctly forecasted by all 56 surveyed economists.

On the data front in Europe today, French, German, and Italian inflation data is due, as are the latest German and EU unemployment figures. The main regional Stoxx 600 index is currently set for a gain of about 1.9% in July, which would extend its year-to-date gains to 9%.

However, the benchmark is likely to face historical headwinds, as it has traditionally had its worst performance in the months of August and September.

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St. James Place share price has staged a strong comeback in the past two years, marking a strong turnaround for a company that was on the brisk a few years ago. STJ jumped to a high of 1,280p, its highest point since March 2022 and 220% above its lowest point in 2024.

St. James Place business is booming

A report published on Thursday showed that St. James Place, the biggest wealth manager in the UK, is doing well as demand for its services jump.

The company’s gross funds under management (FUM) jumped to over £10.5 billion in the year’s first half, a big improvement from the £8.5 billion it made in the same period last year. This amount was about 58% of what it brought in last year.

The net inflows doubled from £1.9 billion to £3.8 billion, while its total funds under management jumping from £190 billion in January to £198.5 billion.

These numbers fueled the growth of its revenues and profits. Its profit after tax jumped to £279 million from £165.1 million, while its earnings per share soared from 29.9p to 51.6p. In a statement, Mark FitzPatrick, the CEO said:

“Beyond new business, the first half was a busy period of heavy lifting as we progressed in delivering our key programmes of work. We expect our new simple, comparable charging structure to be in place from 26 August 2025, and we look forward to achieving this important milestone.”

READ MORE: St. James Place share price rebounded: will the gains hold?

The company has implemented major changes in the past few years as its turnaround intensified. It is introducing a new charging structure, which will have an initial advice charge based on the assets. The first £250,000 will be charged 3%, while the next £250k will cost 2%. Amounts of £500k and above will cost 1%.

After this, the company will charge on the ongoing charges, with advice costing 0.80%. Unit trusts and ISAs will cost 0.27%, while pensions and investment bonds will cost 0.35%. Funds will have an expense ratio of between 0.09% and 0.69%.

The company is also implementing cost cuts, with hopes to slash about £100 million by 2027. One approach has been to implement layoffs of about 500 employees. 

St. James Place share price technical analysis

The weekly chart shows that the STJ stock price has staged a strong comeback in the past few months. It has moved from a low of 373.4p in 2024 to 1,250p.

The stock has formed a golden cross pattern as the 50-week and 200-week Exponential Moving Averages (EMA) crossed each other. 

Most importantly, it has formed an inverse head-and-shoulders pattern, a popular bullish reversal. Therefore, the stock will likely continue rising as bulls target the 2023 high of 1,516p, up by 21% from the current level. 

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Nvidia’s re-entry into the Chinese market with its H20 general processing units has triggered a fresh wave of national security scrutiny from Beijing, potentially delaying or disrupting the sale of hundreds of thousands of AI chips, as per a CNBC report.

While the US-based chipmaker has received clearance from Washington to resume exports, China’s Cyberspace Administration (CAC) is now demanding detailed documentation on alleged vulnerabilities and embedded tracking technologies in the H20 chips.

The concerns arise at a time when Nvidia has already absorbed a $4.5 billion writedown on unsold H20 inventory due to an effective US-led export ban imposed earlier this year.

Although the company expects sales to recover, the ongoing geopolitical tension may introduce further complications.

CAC demands clarification on surveillance risks

On Thursday, Nvidia executives met with Chinese officials after the CAC issued a public statement requesting the company to “clarify and submit relevant supporting documentation regarding security risks” in its H20 computing chips.

The regulator noted that the AI chips may contain “serious vulnerabilities and backdoors,” including capabilities for “tracking and positioning” and “remote shutdown”.

The CAC’s statement, published online, referenced reports from American AI experts who have previously highlighted that such surveillance technologies are already embedded in Nvidia’s chip architecture.

While these features may be compliant with new US export rules, Beijing has raised the alarm over possible misuse.

Lawmakers in the US push for tighter export controls

The scrutiny comes amid rising pressure from US lawmakers to enforce stricter security checks on AI chip exports.

In May, Republican Senator Tom Cotton and a bipartisan group of eight Representatives introduced the US Chip Security Act.

If passed, the legislation would mandate companies like Nvidia to include tracking and location-verification mechanisms in their AI chips intended for export.

Democratic Representative Bill Foster, one of the co-leads on the bill, noted that much of this surveillance infrastructure already exists in Nvidia’s chips.

Independent technical experts told Reuters that the technologies required for such tracking are not only available but also partly integrated into current chipsets.

Despite objections from some US lawmakers against relaxing the export ban, Nvidia confirmed during CEO Jensen Huang’s visit to Beijing that H20 shipments to China were set to resume.

That trip followed a high-level meeting between Huang and US President Donald Trump.

Nvidia’s inventory strategy shifts amid mounting pressure

To fulfil growing demand in China, Nvidia has reportedly placed orders for 300,000 H20 chips with Taiwanese semiconductor manufacturer TSMC.

The move marks an aggressive attempt to capitalise on the newly opened export channel after months of uncertainty.

In May, the company stated that its quarterly revenue could have been $2.5 billion higher had the restrictions not been in place.

The H20 chips, specifically designed to comply with earlier US export controls, were central to Nvidia’s strategy to retain its footprint in China without breaching Washington’s trade regulations.

Geopolitical friction threatens Nvidia’s China ambitions

Nvidia’s balancing act between Washington’s evolving chip policies and China’s growing distrust underscores the complex geopolitical environment surrounding AI hardware.

The CAC’s intervention could signal broader regulatory pushback that might limit how far Nvidia can go in re-establishing itself in the Chinese market.

As Beijing continues to investigate the security features of the H20, further delays or even new restrictions cannot be ruled out.

For Nvidia, the challenge now lies in navigating both sides of the Pacific without alienating either power.

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