China Is 'Very Sneaky,' Will Source Nvidia Chips From 3rd Parties, Says Expert Amid Blackwell Chipmaker's 22% YTD Decline

While the ongoing tariff war and existing chip curbs on China have made it harder to access the latest developments in the U.S. artificial intelligence technology space, this expert says that China can bypass the restrictions to gain access to the Nvidia Corp.’s chips.

What Happened: The administration led by Joe Biden issued fresh restrictions on the exports of U.S.-developed computer chips that power artificial intelligence systems before leaving the office.

Following this, the Donald Trump's administration said that they were planning stricter curbs and also asked its key allies to match the curbs on China, reported Bloomberg.

However, despite the government’s efforts, the founder and chief investment officer of Navellier & Associates, Louis Navellier said, “China is very sneaky and will get Nvidia chips from 3rd parties.”

Nvidia has declined 22.65% in 2025, which was also fueled by DeepSeek’s emergence as the top app on iOS App Store in January. The Chinese AI startup had claimed that it used Nvidia’s H800 chips for the application. These chips complied with U.S. export controls, reported Reuters. The company also said it only cost $5.6 million for training its R1 model.

According to a Piper Sandler report, a comparable run at OpenAI would likely cost around $10 million, making DeepSeek's "cost not so impressive relative to the U.S." The note also suggested that OpenAI's runs are likely more "comprehensive" and "secure".

Navellier added that “China says they are good at AI, but after all the DeepSeek crashes, there appears to be a big problem.”

“It will be up to the Trump administration to punish China,” he said.

See Also: Nasdaq 100 To Enter Bear Territory, Confirms Historical Trend After Falling Over 3.5%: ‘Not The Best Sign For Bulls,’ Says Expert

Why It Matters: Talking about the decline in Magnificent 7 stocks in 2025, he said, “Amazon and Google missed analyst expectations, so that ruined the party,” adding that “Nvidia will only get stronger on Blackwell chip sales.”

Only Meta Platforms Inc. has outperformed the Magnificent 7 stocks, it has been down 0.21% in 2025. According to John Murillo, the chief dealing officer at B2BROKER, this was because investors favor less leveraged tech stocks like Meta. Also, the weaker guidance by these companies amid high interest rates and an inflationary push from Trump’s tariff policy is impacting these technology giants.

Furthermore, Navellier reiterated that the Nvidia AI Developers conference should help to turn around some technology stocks.

Stocks	YTD Performance	One Year Performance
Nvidia Corporation (NASDAQ:NVDA)	-22.65%	24.73%
Apple Inc. (NASDAQ:AAPL)	-6.71%	31.68%
Microsoft Corp. (NASDAQ:MSFT)	-9.18%	-6.20%
Amazon.com Inc. (NASDAQ:AMZN)	-11.66%	13.13%
Alphabet Inc. Class A (NASDAQ:GOOGL)	-12.44%	20.48%
Alphabet Inc. Class C (NASDAQ:GOOG)	-11.97%	20.78%
Meta Platforms Inc. (NASDAQ:META)	-0.21%	23.66%
Tesla Inc. (NASDAQ:TSLA)	-41.43%	24.96%
SPDR S&P 500 ETF Trust (NYSE:SPY)	-4.12%	9.64%
Invesco QQQ Trust ETF (NASDAQ:QQQ)	-7.35%	8.08%

Price Action: The SPDR S&P 500 ETF Trust and Invesco QQQ Trust ETF, which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Tuesday. The SPY was up 0.38% to $562.73, and the QQQ also advanced 0.67% to $475.88, according to Benzinga Pro data.

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