Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
Investing.com-- China has told domestic companies to avoid using Nvidia’s (NASDAQ:NVDA) H20 processors, particularly for government-related projects, Bloomberg reported on Tuesday, citing people familiar with the matter.
The guidance, issued in recent weeks, also applies to certain AI accelerators from Advanced Micro Devices Inc (NASDAQ:AMD), and complicates Nvidia and AMD’s plans to recover lost China sales, the report said.
Both companies recently gained U.S. approval to resume lower-end AI chip sales to China, under the condition that 15% of related revenue be paid to Washington.
Chinese regulators have questioned firms on why they buy H20s over local alternatives and raised concerns about the chips’ security, which Nvidia denies. The notices coincide with state media reports casting doubt on the processors’ reliability.
While the current curbs focus on sensitive applications, Beijing could extend them, Bloomberg reported. The move comes as China pushes to strengthen domestic chip production and reduce reliance on U.S. technology.