Wall St futures flat amid US-China trade jitters; bank earnings in focus
Investing.com-- Chinese chip stocks extended a week-long rally on Friday, after a report said regulators had ordered technology companies to halt purchases of Nvidia’s (NASDAQ:NVDA) AI chips, bolstering bets on Beijing’s drive for self-reliance in semiconductors.
The Financial Times reported on Wednesday that the Cyberspace Administration of China had told firms, including Alibaba and ByteDance to cancel orders for Nvidia’s China-tailored AI processors.
The reported move underscored China’s push to cut dependence on U.S. technology suppliers as ties between the world’s two largest economies remain strained.
Hong Kong-listed shares of Semiconductor Manufacturing International Corp (HK:0981) gained over 3% on Friday and were headed for a 12% weekly jump.
Hua Hong Semiconductor (HK:1347) stock jumped over 5%, and was on track to surge over 18% this week.
Shanghai-listed optical fibre and cable maker Yangtze Optical Fibre (SS:601869) climbed 10% on Friday, set for a 35% weekly advance.
Hong Kong-listed Baidu (HK:9888) shares were largely steady on Friday but were poised for a 15% weekly rise, amid reports that the company has begun using its internally developed Kunlun P800 chip to train its AI models.
The surge comes as Beijing conducts an antitrust probe into Nvidia, adding to a series of regulatory and geopolitical headwinds for the U.S. chipmaker in one of its largest markets.
Meanwhile, U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to speak later on Friday to finalise terms of a deal over TikTok’s U.S. operations, and get clarity on other trade matters.