NVIDIA Corporation (NASDAQ:NVDA) has reportedly instructed some of its suppliers to suspend production of the H20 AI chip designed for the Chinese market, following heightened scrutiny from Chinese authorities, according to The Information.
Shares of the semiconductor giant fell 1.2% in premarket trading on Friday at 04:14 ET (08:14 GMT).
Earlier this month, Chinese regulators requested several domestic AI developers, including Tencent and ByteDance, to explain their H20 purchases, citing potential security concerns. The report could not be immediately confirmed by Investing.com.
The H20, developed under Biden-era restrictions on AI exports to China, remains highly sought after among local AI companies. Sales had been previously restricted by U.S. export controls amid ongoing trade tensions, but Nvidia resumed H20 shipments to China in late July as relations between Washington and Beijing eased.
Despite the renewed scrutiny, Nvidia continues to regard China as a key market. CEO Jensen Huang recently visited the country and held meetings with senior officials, even as Beijing raised concerns that the H20 chips might include remote-access features—a claim Nvidia has consistently denied.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.