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Sep 17, 2025 8:00 AM

China Bans Nvidia Chip Purchases For Major Tech Firms: NVDA Stock Falls In Wednesday Pre-Market

China has banned its leading technology companies from procuring Nvidia Corporation (NASDAQ:NVDA)’s artificial intelligence (AI) chips. During Wednesday’s pre-market trading session, Nvidia stock fell nearly 1.5%.

China Halts Nvidia Chip Use, Boosts Domestic AI Tech

The Cyberspace Administration of China (CAC) has instructed major tech firms, including ByteDance and Alibaba Group Holding Ltd (NYSE:BABA), to halt their testing and orders of Nvidia’s RTX Pro 6000D, a chip specifically designed for the Chinese market, the Financial Times reported.

This directive follows earlier guidance from Chinese regulators, focusing on Nvidia’s H20, another China-only chip widely used for AI. The ban comes after Chinese regulators determined that domestic chips have achieved performance levels comparable to those of Nvidia’s models used in China.

Nvidia did not immediately respond to Benzinga’s request for comment.

Check out the current price of NVDA stock here.

China is exerting pressure on its tech companies to strengthen the country’s domestic semiconductor industry ...