Nvidia Stock Draws Significant Investor Interest After This Development In China – Find Out More

Nvidia Corp. (NVDA) stock gained the spotlight on Wednesday after it was reported that Beijing has issued a sweeping prohibition on the purchase of Nvidia’s artificial intelligence chips by the country’s leading tech companies.

According to a Financial Times report, the directive, delivered this week by the Cyberspace Administration of China (CAC), instructed major firms, including Alibaba Group Holding (BABA) and ByteDance, to halt testing and procurement of Nvidia’s RTX Pro 6000D, a chip specifically designed for the Chinese market.

Nvidia’s stock traded over 1% lower in Wednesday’s premarket. A Stocktwits user opined that China will never win the AI war with a ban on Nvidia. 

The report noted that the latest move extends previous regulatory guidance that focused on another Nvidia product for China, the H20 chip. Officials now believe domestic AI processors have reached, or even surpassed, the performance levels of the restricted U.S. chips.

Nvidia’s operations in China took a hit after the U.S. government restricted the export of its advanced chips to the country last year, citing national security concerns. In response, the company created a special version of its chip for China, called the H20, designed to meet the regulations. However, the new Trump administration later decided to block that version as well.

Since then, the White House has eased the restrictions slightly and is now approving export licenses for Chinese firms on an individual basis.

Nvidia’s stock has gained over 30% in 2025 and 51% in the last 12 months. 

Also See: Meta Connect 2025 Kicks Off Today: Stock Edges Down Premarket

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