China Targets Nvidia's H20, RTX Pro 6000D Chips In Customs Crackdown As It Pushes To Cut Reliance On US Technology: Report - Alibaba Gr Hldgs (NYSE:BABA), NVIDIA (NASDAQ:NVDA)

Core Insights - China has initiated a comprehensive customs crackdown on Nvidia's AI chips, particularly focusing on the H20 and RTX Pro 6000D models designed for the Chinese market [1][2][4]. Group 1: Customs Inspections - Chinese customs officers have been deployed at major ports to conduct stricter inspections of semiconductor imports, with an initial focus on Nvidia's products [2][3]. - The inspections aim to prevent Chinese companies from ordering Nvidia products, following regulatory guidance discouraging such purchases [3][4]. - Authorities are now checking for false declarations and potential smuggling violations related to all advanced chips [3]. Group 2: Domestic Semiconductor Strategy - Chinese authorities believe that domestic semiconductor firms have achieved performance levels comparable to Nvidia's downgraded chips [5]. - Beijing plans to triple the production of advanced semiconductors next year to fill the demand gap left by Nvidia's exit from the market [5]. Group 3: Nvidia's Financial Outlook - Nvidia's CEO stated that the company's financial guidance already assumes zero revenue from China due to ongoing export restrictions [6]. - Nvidia expects third-quarter revenue to fall between $52.92 billion and $55.08 billion, excluding any contributions from shipments to China [7]. - Despite regulatory challenges, Nvidia remains the world's most valuable chipmaker, with a market capitalization of approximately $4.68 trillion and a significant increase in share price over the past year [7][8].