Nvidia fell over 2.5% after reports that China banned its RTX Pro 6000D AI chips. CEO Jensen Huang voiced disappointment, citing broader US-China tensions affecting the company’s operations in the country.
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Shares of Nvidia Corp fell more than 2.5% in early Wednesday trading after the Financial Times reported that China’s Cyberspace Administration (CAC) had prohibited companies, including ByteDance and Alibaba, from purchasing the RTX Pro 6000D AI chip.
CEO Jensen Huang described the situation as “disappointing” and noted, “We can only be in service of a market if the country wants us to be.”
He acknowledged China’s larger geopolitical considerations between the US and China, stating, “We probably contributed more to the China market than most countries have.”Huang highlighted that Nvidia has guided analysts to exclude China from financial forecasts due to uncertainty arising from US-China discussions.
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The move follows prior US export restrictions on Nvidia’s AI chips over national security concerns and a deal allowing limited H20 chip exports to China.
Earlier this week, China’s State Administration for Market Regulation (SAMR) also launched an anti-monopoly investigation into Nvidia’s acquisition of Mellanox, further compounding challenges for the company’s operations in the country.
