TCEHY - What's Going On With Nvidia Stock Monday? | Benzinga
Nvidia Corp (NASDAQ: NVDA), a key player in the AI chip market, is grappling with the repercussions of U.S. regulations that have barred the sale of its high-performance AI chips to China since October.
These regulations have led Nvidia to design a new lineup of lower-powered AI chips.
Still, this shift has not been well-received by major Chinese cloud companies, some of Nvidia's most significant global customers.
Companies like Alibaba Group Holding Limited (NYSE: BABA) and Tencent Holding Ltd (OTC: TCEHY) have indicated their intentions to substantially reduce their orders of Nvidia's chips compared to their original plans when Nvidia offered its now-restricted products, the Wall Street Journal reports.
Also Read: Nvidia Navigates US Tech Restrictions, Eyes Growth in China and India Markets Amidst Global Shifts
This reluctance stems from a growing interest in local alternatives and in-house developments.
Major Chinese firms, including AI pioneer Baidu Inc (NASDAQ: