Core Viewpoint - Nvidia is facing increased pressure on its sales in China due to a reported ban by the Chinese government on its largest tech firms from purchasing Nvidia AI chips, specifically the RTX Pro 6000D, which was tailored for the Chinese market [2][3][7]. Group 1: Impact on Nvidia - Shares of Nvidia fell approximately 3% following the news of the ban, despite having risen about one-third earlier in the year [2]. - The Cyberspace Administration of China has instructed major companies like ByteDance and Alibaba to cease testing and orders of Nvidia's latest chip [3][7]. - Nvidia's CEO Jensen Huang expressed disappointment regarding the ban, indicating that the company remains patient and supportive of the Chinese market [5][6]. Group 2: Regulatory Context - The new ban is reportedly more stringent than previous guidance, which had focused on limiting the use of an earlier version of Nvidia's AI chip, the H20 [4]. - The Chinese government has concluded that domestic chips are now performing comparably to Nvidia's chips that are permitted under existing export controls [3][4]. - The ban follows accusations from China against Nvidia for antitrust violations, indicating a broader regulatory scrutiny [4].
China Bans Top Tech Firms From Buying Nvidia Chips, Report Says