Nvidia hit as China bans AI chip buys
Beijing, Wednesday, 17 September 2025.
China’s internet regulator has reportedly ordered major tech companies to immediately halt purchases of Nvidia’s AI chips. This move is part of a larger effort to cut reliance on U.S. tech. Companies like Alibaba and ByteDance must stop testing and cancel orders for Nvidia’s RTX Pro 6000D. Nvidia’s CEO, Jensen Huang, acknowledged larger issues between the U.S. and China, stating he’s ‘disappointed’ but ‘patient’. This ban extends beyond earlier restrictions, impacting Nvidia’s revenue and stock.
Impact on Nvidia’s market position
The Chinese government’s directive impacts Nvidia’s dominance in the AI chip market [5]. This order signals a move towards domestic AI chip development [5]. Companies such as Alibaba are creating their own AI chips [5]. Alibaba’s ‘PingTouGe’ AI chip is gaining traction within China [5]. This trend indicates a long-term challenge to Nvidia’s market share in China [5]. Vey-Sern Ling from Union Private Bank suggests China prefers developing AI with domestic technology [5]. They would rather avoid reliance on U.S. tech that could face restrictions [5].
Revenue implications for Nvidia
The ban directly affects Nvidia’s revenue potential from the Chinese market [1]. Several companies planned to order tens of thousands of RTX Pro 6000D chips [1][3]. These companies have now been told to halt testing and orders [1]. The RTX 6000 series isn’t Nvidia’s flagship product [5]. It was designed as a high-end graphics card specifically for the restricted Chinese market [5]. Reduced orders and potential loss of future contracts will likely impact Nvidia’s financial forecasts [1].
Competitive dynamics and alternative chips
Nvidia faces increased competition from domestic Chinese chipmakers [5]. The ban might accelerate the adoption of local alternatives [5]. It was reported that the RTX6000D chip was priced around 50,000 RMB [5]. Tests showed its performance lagged behind the RTX5090 [5]. The U.S. prohibits RTX5090 exports to China, but it’s available through gray markets for less than half the price of the RTX6000D [5]. Chinese firms are also awaiting clarity on Nvidia’s H20 chip orders [5]. They also hope for approval of the B30A chip, which is more powerful than the H20 [5].
Broader geopolitical context
Jensen Huang acknowledged that the U.S. and China have larger issues [1]. U.S. officials voiced national security concerns during trade talks with China in Madrid [1]. China accused Nvidia of violating anti-monopoly law [1]. This occurred after Nvidia’s $7 billion acquisition of Mellanox Technologies Ltd [5]. China is also conducting an anti-dumping investigation into semiconductor products from U.S. companies like Texas Instruments [5]. These actions underscore the complex geopolitical factors influencing Nvidia’s business in China [1][5].