China warns companies against using Nvidia and AMD chips, report says

In this articleAMDNVDA your favorite stocksCREATE FREE ACCOUNTNvidia CEO Jensen Huang and U.S

Secretary of the Interior Doug Burgum attend the "Winning the AI Race" Summit in Washington D.C., U.S., July 23, 2025

Kent Nishimura | ReutersChina has told companies to refrain from using Nvidia's H20 chips after the chipmaker recently received apval to resume shipping the less advanced artificial intelligence duct, Bloomberg reported, citing sources familiar with the matter.Authorities have recently told companies to avoid using the Nvidia chips, or those from Advanced Micro Devices, for government and national security use cases, according to the news outlet.The report comes after the White House confirmed on Monday that both Nvidia and AMD have agreed to give 15% of all China revenues to the U.S. government.Last month, both companies said they would soon resume China shipments after the administration started requiring export licenses earlier this year

Both Nvidia's H20 chip and AMD's MI380 were created to work around previous AI chip restrictions to China due to national security fears.s of both stocks teetered on Tuesday.Read more CNBC newsWhat Trump's Nvidia and AMD China deal means for the worldTrump says he asked for 20% cut from Nvidia, calls H20 an 'obsolete' chipStubHub IPO is back on for September after ticketing company delayed plans on tariff concernsCrypto exchange Bullish raises IPO size, seeks nearly $5 billion valuationDuring a press conference Monday, Trump called Nvidia's H20 chip "obsolete" and said he wouldn't allow the higher-end Blackwell shipments there without 30% to 50% decrease in performance.China is a key market for AI chipmakers such as Nvidia and AMD

Earlier this year, Nvidia CEO Jensen Huang said getting pushed out of the China market would be a "tremendous loss" for the company

He estimated the country's AI market will hit $50 billion over the next two to three years.Over the weekend, a social media account connected to Chinese state media said that the H20 chips were not "safe."Read the here.Stock Chart IconStock chart iconOne-day stock chart of Nvidia and AMD.WATCH: Trump's decision to allow chip sales to China is 'reverse tariff' and we could see more such dealswatch now10:2910:29Trump's decision to allow chip sales to China is 'reverse tariff': investorSquawk Box Asia