China’s Cyberspace Administration (CAC) has issued a directive to its major technology companies, ordering them to halt purchases of Nvidia’s RTX Pro 6000D AI chips and to cancel existing orders and testing. The 6000D is one of the Nvidia chips tailored for the Chinese market and designed to comply with earlier U.S. export restrictions. This move goes further than previous guidance targeting the H20 chip, which was also under scrutiny.
Chinese regulators’ move comes as China is pushing aggressively toward domestic self-sufficiency in semiconductors and AI hardware. They believe that local chipmakers like Huawei, Cambricon, etc., are reaching performance comparable to NVIDIA’s China-specific models.
Concern over security and “backdoor” claims
There is also concern inside China over security and “backdoor” claims related to NVIDIA’s chips, especially around the H20. Chinese state media and regulators have raised these issues on prior occasions. NVIDIA has denied any backdoors.
The RTX Pro 6000D had only recently been introduced as a “compliant” model for China, given U.S. export controls. This was aimed at allowing some GPU sales while staying within U.S. rules. But now that China is pushing firms not to use it, it limits that strategy.
Investors seem concerned about potential revenue being lost or delayed given China is a large market and some large‐volume orders for these chips were expected. The ban may also raise questions about inventory, supply chain commitments, and how Nvidia will forecast revenue from China going forward.
Nvidia’s CEO, Jensen Huang, expressed disappointment over the development but emphasized understanding of the broader geopolitical dynamics between China and the U.S. Speaking in London, he stated, “We can only be in service of a market if a country wants us to be.” He also acknowledged that China remains an important market but described the regulatory environment as a “rollercoaster.”
Impact on NVIDIA’s stock
Following the reports, Nvidia’s stock dropped by about 1-2% in pre-market trading. Some analysts are now factoring in lost or delayed revenue from China into their forecasts. Already, demand for the 6000D had been “lukewarm,” even before the CAC’s directive. At the time of reporting, Nvidia shares were down 2.87% trading around $169.82.
Source: Yahoo Finance