NVIDIA stock declined following news that the Cyberspace Administration of China instructed major technology companies to cease purchasing its artificial intelligence chips. As the Financial Times stated, regulators have ordered companies such as ByteDance and Alibaba to cancel the orders of the RTX Pro 6000D and H20 chips. Both models were created with the Chinese market in mind to address the previous US export restrictions.
Some companies had already invested heavily in AI and started verifying the suppliers of their servers. This sudden termination changed plans to use NVIDIA products in future AI projects. Additionally, the relocation suggests that Beijing is eager to reduce its dependence on US equipment and expedite the implementation of semiconductors in the country.