Nvidia Faces $17 Billion Threat as China Tightens Energy Rules on AI Chips

China's new regulations jeopardize Nvidia's H20 chip sales, intensifying competition from domestic players like Huawei and DeepSeek.

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.