Overview

• An investment note attributed to Jefferies and shared on social media claims Chinese authorities have officially barred purchases of Nvidia’s H20 and other downgraded U.S. AI chips, a move the bank says would stop new orders until further notice.
• The same note and related industry checks reportedly indicate Nvidia has suspended packaging and server production work tied to the H20, which follows separate reports that some suppliers were told to pause.
• Chinese regulators have recently summoned major tech firms including Tencent, ByteDance and Baidu to discuss H20 buying and alleged security risks, escalating scrutiny that intensified after comments by U.S. Commerce Secretary Howard Lutnick were seen in Beijing as insulting.
• Nvidia maintains the H20 is a commercial, non‑military product with no backdoors, and Jensen Huang said the company has significant H20 inventory prepared and is awaiting purchase orders while discussing a potential, more capable China‑compliant chip with U.S. officials.
• The U.S. banned H20 sales in April and reversed course in July under a licensing regime that news reports say includes a roughly 15% revenue share to Washington, as Nvidia contends with a $4.5 billion H20 write‑down and uncertainty in a China market that generated about $17 billion, or 13% of revenue, last year.