Overview

• China's National Development and Reform Commission has introduced energy efficiency rules that could block Nvidia's H20 chips from the market.
• Chinese regulators have reportedly advised major firms, including Alibaba and Tencent, to avoid purchasing Nvidia's H20 processors.
• Nvidia is working to modify the H20 chip to comply with the new standards and has requested a meeting with NDRC chair Zheng Shanjie.
• Domestic competitors like Huawei and DeepSeek are gaining ground, with Huawei doubling its AI chip yield rate and DeepSeek driving demand with cost-effective AI models.
• Nvidia's stock has dropped significantly, reflecting investor concerns over the potential $17 billion impact on its annual revenue from China.