Nvidia's GPU Sales at Risk As China Pushes Local AI Chips in Retaliation

Nvidia Corp’s (NASDAQ:NVDA) H20 graphics processing unit (GPU) revenue could be affected by China’s prioritization of domestic-made artificial intelligence (AI) chips.

China has informally urged its companies to leverage domestic AI chips over those from Nvidia, SCMP cites familiar sources. The stock is trading lower on Monday.

Also Read: Apple To Launch Budget iPhone in 2025, Aims for Market Share Gains from Huawei and Xiaomi

The Asian country ordered its companies to prioritize Huawei Technologies chips instead.

Reports indicating China’s retaliation against the U.S. semiconductor embargo on the Asian country started emerging in May. The U.S. cited national security reasons for the sanctions.

According to official records, China committed 43.5 billion yuan ($6.12 billion) to computing data centers.

Prior reports said Chinese AI developers bypass U.S. sanctions by leveraging blockchain technology via overseas data centers. China also ...

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