Morning Note: Nvidia Slams China Chip Ban; Bitcoin Climbs on Trade Peace;

Nvidia CEO: AI Chip Ban on China Backfired

Nvidia CEO Jensen Huang criticised the U.S. restrictions on AI chip exports to China, arguing that the policy has backfired and cost American companies billions in lost sales. He said the 2023 “AI Diffusion” rule, introduced by the Biden administration to limit China's AI progress, was based on flawed assumptions. Instead of curbing China’s capabilities, Huang noted that the ban on high-end chip exports has inadvertently strengthened Chinese suppliers such as Huawei Technologies.

Since the rule was enacted, Nvidia's market share in China's AI chip sector has fallen sharply, from about 95% to 50%. Huang also warned that China’s domestic AI industry is advancing rapidly and emphasised that local players would prefer the U.S. never regain market access. Considering these developments, he voiced support for Donald Trump’s proposed rollback of the export restrictions, calling it a more pragmatic strategy for U.S. interests in the global AI race.

(Nvidia Share Price Daily Chart, Source: Trading View)
From a technical analysis perspective, Nvidia’s share price has been moving in a bullish trend since the beginning of April 2025, following a rebound from the support zone of 91.00 – 94.00, as indicated by a series of higher highs and higher lows. Recently, it broke above the swap zone of 120.00 – 123.00, further confirming the bullish momentum. Therefore, the price may potentially surge upward to retest the resistance zone of 148.00 – 151.00.

Bitcoin Surges as U.S. and China Ease Trade Tensions

Bitcoin soared to a new all-time high following a temporary trade truce between the United States and China, which helped ease broader macroeconomic concerns and lifted market sentiment. The announcement significantly boosted investor confidence, encouraging both traditional and crypto market participants to re-enter risk assets. This short-term suspension and the constructive tone of negotiations alleviated fears of a sudden escalation in trade tensions, sparking renewed risk appetite across financial markets.

(Bitcoin Daily Price Chart, Source: Trading View)
From a technical analysis perspective, Bitcoin's price has been moving in a bullish trend since the beginning of April 2025, as indicated by a pattern of higher highs and higher lows. Recently, the price broke solidly above the resistance zone of 106,700 – 108,200 with significant bullish momentum. Therefore, it may potentially continue to surge higher.

Musk Steps Back from Politics, Eyes Bigger Tesla Stake

Elon Musk announced plans to scale back his political spending to refocus on business priorities, telling a global audience at the Qatar Economic Forum that he intends to step away, at least financially from U.S. political involvement for the time being. “I think I’ve done enough,” Musk said via video, noting that future political contributions will be significantly reduced.

In a separate interview with CNBC later the same day, Musk clarified his long-term intentions regarding Tesla, stating he wants to increase his stake in the company from 12.77% to 25%. Valued at over $140 billion, this larger holding would give him enough voting power to maintain some control while still allowing shareholders to remove him if necessary. “That’s the level where I’d feel comfortable,” he said, emphasizing that it offers a balance between influence and accountability.

(Tesla Share Price Daily Chart, Source: Trading View)
From a technical analysis perspective, the Tesla share price has been moving in a bullish trend since early April 2025, as indicated by the higher highs and higher lows. Recently, it has

been rejected from the resistance zone of 352 – 364. If it can close above this zone in the near term, this indicated the bullish trend will potentially continue, pushing the price upwards. Conversely, if the bearish pressure prevents it from breaking above, it may potentially drop lower to retest the swap zone of 274 – 286.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.