New York, Jan 21, 2026, 09:41 EST — Regular session
- Nvidia shares jumped in early trading, rebounding from a steep decline the day before.
- Washington is preparing to debate a bill that might tighten the approval process for AI chip exports.
- Ahead of Nvidia’s Feb. 25 earnings, investors are closely watching headlines on China access.
Nvidia shares gained roughly 0.6% to hit $179.17 in early Wednesday trading, bouncing back from a 4.4% drop the day before. The stock kicked off the session at $178.95 and fluctuated between $178.43 and $179.83 in the morning. 1
The bounce arrives as policy risk reenters the spotlight. Nvidia, the most prominent proxy for the AI spending surge, tends to react sharply whenever there’s a change in who’s allowed to purchase its leading chips.
That sensitivity showed up again just a day before, with U.S. stocks retreating sharply amid fresh tariff concerns and geopolitical tensions rattling risk appetite. The S&P 500 dropped 2.06%, while the Nasdaq tumbled 2.39% on Tuesday. Investors also flocked to safe-haven assets during the session. 2
A U.S. House panel is set to review a bill that would grant Congress a formal 30-day window to examine and possibly block export licenses for advanced AI chips. Under the proposal, the House Foreign Affairs Committee and the Senate Banking Committee would have this period to weigh in on approvals, Reuters reported. 3
The debate took a sharp turn this week. Dario Amodei, CEO of AI company Anthropic, told Reuters that sending advanced chips to China “is a bit like selling nuclear weapons to North Korea.” 3
Nvidia CEO Jensen Huang is set to visit China in late January as the company aims to regain access to its crucial AI chip market, Bloomberg reported via Reuters. Nvidia declined to comment, Reuters noted. 4
Export licenses — required for shipping certain high-end chips overseas — have turned into a daily trading factor for Nvidia. Additional review steps can cause delays and boost headline risk, even without any rule changes.
Tech stocks felt the pressure after Morgan Stanley downgraded the IT hardware sector on Tuesday, citing slowing demand and rising costs as businesses tighten their budgets. The bank warned of a “perfect storm” brewing—softer demand, inflationary costs, and stretched valuations all converging. 5
Nvidia has relied on robust demand for data-center chips to counterbalance weakness in other areas. In its latest quarterly report, the company hit a record $57.0 billion in revenue and projected fourth-quarter revenue around $65.0 billion, give or take 2%. 6
The downside is clear: tougher U.S. regulation, ongoing doubts about China access, and a market already jittery over tariffs could keep the stock volatile. “A day like [Tuesday], when bond yields rise, equities drop, and the dollar weakens … makes people question their assumptions,” Lauren Goodwin at New York Life Investments told Reuters. 7
Upcoming catalysts include Wednesday’s House committee moves and any updates on Huang’s travel plans to China. After that, attention will shift sharply to Nvidia’s Q4 earnings, due Feb. 25. 8
