Beijing urged local companies to stay away from the company's chips, according to a report, while the country is promoting domestic chip makers.

Nvidia stock dropped in premarket trading before paring losses, following a report that China is urging local companies not to buy its AI chips.

Nvidia faces potentially bigger hurdles in China after Bloomberg reported that the country's regulators are urging companies not to buy its H20 chips, used for AI models. Please w

Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence chips instead of Nvidia Corp. products, part of the nation's effort to expand its semiconductor industry and counter US sanctions.