Nvidia shares are in an interesting position heading into tonight’s quarterly earnings release. The stock has rallied some 45% from an April 3 low, but is barely positive for the year and far off a record high hit in January.

Shares of Nvidia Corporation (NASDAQ: NVDA) are trading lower Friday after reports emerged that the Trump administration is preparing a new set of export restrictions aimed at China's tech sector.

Nvidia's solid first-quarter results reported after the bell on Wednesday are lifting a number of stocks across the chip and server industries on Thursday morning.

Nvidia Corp. Chief Executive Officer Jensen Huang soothed investor fears about a China slowdown by delivering a solid sales forecast, saying that the AI computing market is still poised for “exponential growth.

Nvidia CEO Jensen Huang said U.S. export controls have effectively shut the $50 billion China market to American companies. As a result, Nvidia was forced to scrap $8 billion in H20 chip orders and write off $4.

Nvidia stock soared on Thursday, returning the AI chip giant to the top of the list of the world’s most valuable companies.

Nvidia Corp. Chief Executive Officer Jensen Huang said that Chinese AI rivals are filling the void left by the departure of US companies from that market, and their technology is becoming more powerful.