Nvidia stock was on track to pare losses Thursday after the stock sold off in the previous session on a report that China had banned its artificial-intelligence chips, indicating investors are seeing current trade restrictions as temporary. Shares rose 2.5% to $174.50 in premarket trading Thursday, following a 2.6% drop Wednesday.

Asia stocks were mixed overnight as the US dollar strengthened, Japan, Taiwan, and South Korea outperformed, while Mainland China and Hong Kong underperformed.

Nvidia CEO Jensen Huang said on Wednesday that Washington and Beijing "have larger agendas to work out" as the tech giant navigates the tricky politics of the U.S.-China trade war and tries to satisfy demand from companies worldwide hungry for the company's crucial AI chips.

Nvidia Corporation faces slowing growth, China risks, and overvaluation, with intrinsic value far below current levels. Find out why NVDA stock is a sell.

Nvidia has nearly lost access to the Chinese market and may never return. China has decided not to depend on a U.S. product in the AI race.

China’s market regulator on Monday said that Nvidia violated the country’s anti-monopoly law, according to a preliminary probe, adding that Beijing would continue its investigation into the U.S. chip giant. Shares of Nvidia were down around 2% in premarket trading.

Now, with no real commercial teethgiven Google's limited presence in Chinathe decision could be read as a goodwill signal meant to ease tensions, especially as trade negotiations remain delicately poised.

China drops Google probe but tightens grip on Nvidia ahead of Trump-Xi call, signalling mixed signals on tech and trade strategy. Read here