Nvidia Shares Are Slipping Wednesday: What's Going On?
Nvidia shares fell 3.32% to $169.07 on Wednesday after China banned major tech firms, including ByteDance and Alibaba, from purchasing its AI chips, specifically the RTX Pro 6000D and H20. The Cyberspace Administration of China cited the advancement of domestic semiconductors as a reason for the ban, which aims to strengthen China's semiconductor industry and reduce dependence on foreign technology. Companies have been instructed to halt chip-related work, signaling a shift towards a more independent supply chain.
NVIDIA Corporation NVDA shares are trading lower Wednesday after China reportedly banned its leading technology companies from procuring the company’s artificial intelligence (AI) chips.
What To Know: The Cyberspace Administration of China has directed major firms, including ByteDance and Alibaba, to halt testing and orders of Nvidia's RTX Pro 6000D. The chip was designed specifically for the Chinese market but is now restricted under the new guidance.
The directive also applies to Nvidia's H20, another chip widely used for AI in China. Regulators said domestic semiconductors have reached performance levels comparable to Nvidia's offerings in the Chinese market.
Following the announcement, companies instructed suppliers to stop chip-related work, advancing efforts toward a more independent supply chain. The move is part of China's broader strategy to boost its domestic semiconductor industry and reduce reliance on foreign technology.
NVDA Price Action: At the time of writing, Nvidia shares are trading 3.32% lower at $169.07, according to data from Benzinga Pro.
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