Chinese authorities have asked companies to refrain from using Nvidia and AMD chips for government and national security applications.

China has warned companies not to use Nvidia and AMD's H20 chips, especially in contexts involving government and national security. This comes after Nvidia won approval to resume shipments of less advanced AI products. Both companies have also agreed to cede 15% of revenues from China to the US government. The H20 and MI380 chips were developed to avoid previous US restrictions. This significantly affects the shares of both companies, given the importance of the Chinese market to Nvidia and AMD.