NVIDIA Rises 3% Despite AI CEO’s Warning on Chinese Chip Competition; AMD Climbs 5%, Broadcom Gains 3%

A warning that Chinese AI labs could soon sell chips abroad isn’t keeping buyers away from NVIDIA (NASDAQ:NVDA | NVDA Price Prediction). NVIDIA stock traded at $208.24 in the afternoon, up 3% from Monday’s close of $202.06. The gain snaps a four-session losing streak. Even so, NVIDIA stock remains down 11% over the past month.

This rebound has lifted NVIDIA’s market value to $5.03 trillion. The Wall Street Journal reported that the chipmaker has reclaimed the title of world’s most valuable company from Apple (NASDAQ:AAPL). Semiconductor stocks broadly are bouncing back from recent turbulence, with the U.S. midterm elections in focus.

Reflection AI CEO Flags Chinese Chips Riding Along With Open Models

Misha Laskin, CEO of NVIDIA-backed startup Reflection AI, warned in comments reported November 3 that Chinese AI labs giving away open models abroad will start selling their own hardware alongside them. Laskin called open models “Trojan horses for the infrastructure that they bring.” Chinese companies selling open models into the Middle East, other Asian countries or Brazil “will now also start selling chips and their data centers,” he said. That’s a challenge aimed directly at NVIDIA’s ecosystem.

NVIDIA has already removed China from its forecasts. Chief Financial Officer Colette Kress said on the company’s August 26 earnings call, “Given ongoing geopolitical uncertainty, there is no China data center compute revenue in our forward outlook.” China revenue, including Hong Kong, fell to $19.7 billion in fiscal 2026 from $25.0 billion the prior year. What Laskin describes hits a different pool: NVIDIA’s sales outside both the U.S. and China, where sovereign AI revenue grew 35% sequentially in Q2 FY2027.

Another China-related development for NVIDIA emerged the same day. The Financial Times reported on November 3 that NVIDIA has told its cloud clients to sell at least 51% of their services to non-Chinese companies.

The valuation helps explain why buyers shrugged off both items. At 17x forward earnings, NVIDIA trades at a five-year low, versus a five-year average of 36x. Supply is the other buffer, with CEO Jensen Huang telling analysts in August, “Even though our demand is much greater than 70%, our supply allows us to confidently deliver 70%.” Such a gap suggests Chinese hardware competition may weigh more on NVIDIA’s growth beyond fiscal 2028 than on near-term sales.

AMD and Broadcom Outpace NVIDIA’s Bounce

Advanced Micro Devices (NASDAQ:AMD) stock is at $491.87, up 5%, the strongest gain among the three. Q3 2026 results from AMD arrive after the close on November 3, offering a near-term read on AI chip demand ahead of NVIDIA’s own report.

Broadcom (NASDAQ:AVGO) stock is at $332.63, up 3%, running a step ahead of NVIDIA. With all three chip names rising together, NVIDIA’s move looks like part of a sector-wide recovery.

How NVIDIA’s Platform Model Differs From AMD and Broadcom

NVIDIA sells graphics processing units (GPUs), central processing units (CPUs), networking gear and software as one platform that runs in every major cloud. Huang framed it on the August call: “NVIDIA is a platform, an entire AI factory platform that spans the entire AI life cycle, that you can use in any cloud.” AMD competes as a merchant alternative for GPUs and server CPUs, while Broadcom builds custom accelerators and networking chips designed around individual hyperscalers’ needs.

That breadth shapes how NVIDIA meets the threat Laskin described. On the same call, Huang said, “Nearly all open models run on NVIDIA, and the reason for that is because NVIDIA’s footprint around the world is the highest, and our architecture is the most fungible.” Chinese labs matching their own chips with open models would be competing for that same global footprint.

Chinese Competition Raises Pressure on the Next NVIDIA Report

NVIDIA has scheduled its Q3 FY2027 results for November 17, and the company guided for revenue of $108 billion, plus or minus 2%. The next test for NVIDIA is whether management describes demand outside the U.S. and China as holding firm against bundled Chinese offerings.

The bull case rests on a forward multiple at a five-year low and NVIDIA’s demand that still exceeds supply. The bears see a risk that Chinese models, chips and data centers sold as a package could erode NVIDIA’s position in the Middle East, Asia and Latin America over time. A cautious approach could make sense while the Chinese hardware threat abroad plays out, and the picks-and-shovels names driving the global AI expansion, from grid equipment to cooling, are worth a look too (we covered seven of them in a free report on AI infrastructure suppliers that aren’t chipmakers).

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