Nvidia reportedly has ordered a halt to H20 chip production. NVDA stock fell modestly Friday morning.
The tech titan has told some component suppliers to suspend work related to the H20, The Information said Thursday night, citing two sources. The H20 is an AI chip specifically designed for the Chinese market to comply with U.S. exports curbs.
The latest twist comes weeks after the Chinese government strongly encouraged local companies to stop buying the H20 chips, citing alleged security concerns.
In April, the Trump administration banned H20 exports. In June, President Donald Trump reversed course after meeting Nvidia CEO Jensen Huang at the White House. But no actual export licenses were granted in the next several weeks.
On Aug. 11, Trump confirmed that Nvidia and Advanced Micro Devices agreed to give 15% of China chip revenue to the U.S. government in exchange for export licenses.
Separately, Huang said Friday that Nvidia is in talks with the U.S. to sell a new, more powerful chip to China.
Nvidia Stock
Nvidia stock fell 1.7% soon after Friday's market open. Shares dipped 0.2% to 174.98 on Thursday, holding below the 21-day moving average. On Wednesday, NVDA stock tested its 10-week moving average.
Nvidia, a Dow Jones, S&P 500 and Nasdaq component, will report fiscal Q2 earnings on Aug. 27.
AMD stock lost 0.2%. Taiwan Semiconductor stock dipped 0.1%. Taiwan Semiconductor Manufacturing makes Nvidia and AMD chips.
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