This article first appeared on GuruFocus.
Sep 17 – Nvidia (NASDAQ:NVDA) fell nearly 3% on Wednesday after reports said Chinese regulators ordered major tech firms to halt purchases of one of its latest artificial intelligence processors.
The Cyberspace Administration of China has told companies including Alibaba (NYSE:BABA) and ByteDance to stop testing and ordering the RTX Pro 6000D, the Financial Times reported, citing people familiar with the matter. The chip was designed specifically for the Chinese market and introduced in July.
The move marks another setback for Nvidia’s ambitions in the world’s second-largest economy. Earlier this year, Beijing signaled caution over the use of its H20 semiconductors. Nvidia has already excluded sales to China from its financial outlook.
Chief Executive Jensen Huang said at a London event on Wednesday that Nvidia can only operate in markets where it is welcomed. He added that broader issues between Washington and Beijing remain in play but said the company would remain patient.
Nvidia declined to comment on the reported restrictions. Alibaba and ByteDance did not immediately respond to requests for comment, according to the report.