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News  ›  Benzinga

China Tells Tech Firms To Stop Nvidia H200 Chip Orders

Benzinga Logo Benzinga By Erica Kollmann
China Tells Tech Firms To Stop Nvidia H200 Chip Orders

Chinese authorities have instructed local technology firms to pause orders of Nvidia's H200 chips, directing them to prioritize domestic AI processors instead. The move reflects China's strategy to reduce dependence on U.S. semiconductor hardware amid ongoing trade tensions. Despite high demand interest expressed by Nvidia CEO Jensen Huang, the expected mandate for domestic chip usage could significantly impact Nvidia's market share in China.

Insights
SMCI   neutral

Down 35% in past month, RSI of 27.77 indicates potential for reversal


NVDA   negative

China's directive to pause H200 orders and mandate domestic chip usage poses a significant threat to Nvidia's market share and revenue in one of its key markets. While current demand remains high, the expected policy shift toward domestic alternatives could substantially reduce future sales opportunities in China.