NVIDIA Stock Dips 1.15% as China Pushback Halts H20 AI Chip Production

NVIDIA (NASDAQ: NVDA) stock is under heat on August 22, 2025. The company has instructed its suppliers, such as Samsung Electronics and Amkor Technology, to cease development on its China-targeted H20 AI chip. This news has concerned investors over a possible sharp decline in NVIDIA share price.

The stoppage comes after Beijing instructed its domestic companies to steer clear of the H20 due to security reasons. The chip was specifically built as a weaker variation of NVIDIA’s top-of-the-line AI accelerators. However, Chinese customers are increasingly turning away from the company and opting for local options from Huawei and Cambricon.