Nvidia In China’s Crosshairs? Beijing’s Cyber Regulator Pulls Up AI Stalwart To Explain ‘Serious Security’ Risks In H20 Chips

China’s cybersecurity regulator has summoned Nvidia (NVDA) executives to explain what it claims are security vulnerabilities in the company's H20 artificial intelligence chips.

"Recently, serious security issues with Nvidia's computing chips have been exposed," a translated version of the Cyberspace Administration of China's statement read. "Previously, U.S. lawmakers called for advanced chips exported from the US to be equipped with tracking and location capabilities."

"U.S. artificial intelligence experts revealed that Nvidia's computing chips have mature tracking, location, and remote shutdown technologies," the regulator added.

It has asked Nvidia staff to explain the risks and provide relevant documents. The less-advanced H20 chips are specifically designed for the Chinese market in compliance with earlier U.S. export restrictions on selling high-end technology to China.

They were briefly banned from sales to China by the Trump administration starting in April, but have recently been cleared for export. This development was viewed as a significant win for Nvidia, boosting prospects for a sales recovery in China, the world's largest electronics market.

Nvidia and Advanced Micro Devices (AMD) had said earlier this month that they would resume sales of some AI chips in China after securing assurances from Washington that such shipments would be approved.

The sale of H20s to China has been contentious, with some lawmakers warning it could enhance China's military capabilities, while others argue the country already possesses more advanced technology developed by Huawei.

On Stocktwits, retail sentiment toward Nvidia turned 'extremely bullish' early Thursday, up from 'bullish' the day before, as users praised the stock's steady gains in recent months. The stock was among the top 10 trending tickers on the platform.

Nvidia shares are up about 90% from their recent low on April 7, and over 33% year-to-date. In comparison, the SPDR S&P 500 ETF (SPY), which tracks S&P 500 stocks, is up 7.6% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Trump Ramps Up Tariff Pressure On India, Escalates War Of Words With Russia: ‘They Can Take Their Dead Economies Down Together’