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.

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.

China says it’s open to keeping talks going with Nvidia, even though its top internet watchdog just told major tech companies to completely stop buying the company’s AI chips. On Thursday, the Chinese Foreign Ministry responded to the reported enforcement by saying it wants to keep communication alive with “all parties” to maintain global supply

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

Huawei outlined its long-term chip plans for the first time on Thursday and said it would launch the world's most powerful computing clusters - underscoring China's drive to wean itself off foreign semiconductor suppliers like Nvidia .

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.

Nvidia invests $5 billion in Intel for a 4% stake, forging a strategic partnership to develop PC and data center chips amid U.S.–China tensions.