Jim Cramer Calls Reports Of China’s National Security Concerns With Nvidia’s H20 Chips ‘Nonsense’

Jim Cramer on Monday reportedly dismissed reports of Nvidia Corp.’s (NVDA) H20 chips posing a threat to China’s national security, calling them “nonsense.”

In his latest “Investing Club” note, Cramer said the Chinese government could have blocked the imports of Nvidia’s H20 chips if it wanted to, according to a CNBC report.

Nvidia’s shares traded 0.53% higher in Monday’s midday session. Stocktwits data showed the retail sentiment around the company was in the ‘bullish’ territory.

Cramer was referring to reports in Chinese state media on Sunday that said Nvidia’s H20 chips are neither safe, nor advanced, nor environmentally friendly, according to a Reuters report, citing a post by Chinese state broadcaster CCTV.

Nvidia designed the H20 chips for China after the U.S. government put trade restrictions in 2023 on the export of advanced artificial intelligence chips to the Asian giant.

Amid this, President Donald Trump on Monday said that he could allow the exports of Nvidia’s Blackwell AI chips to China if their capabilities were downgraded by 30% to 50%.

Meanwhile, Wells Fargo hiked its price target for the Nvidia stock on Monday to $220 from $185, after reports emerged that the AI bellwether has agreed to pay the U.S. government a 15% cut from the exports of artificial intelligence chips to China. The firm expects Nvidia to fully recapture the $8 billion per quarter revenue shortfall due to the ban on the export of AI chips to China.

NVDA stock is up 36% year-to-date and 68% over the past 12 months.

Also See: Nvidia Stock To Surge 20% After Export China License Agreement Report, Says Wells Fargo: Report

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