Chinese chip stocks rally as Beijing reportedly restricts Nvidia AI chip purchases

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Chinese semiconductor stocks rallied on Thursday after a Financial Times report stated that the country’s cyberspace regulator had instructed major internet companies to stop buying Nvidia’s (NASDAQ:NVDA) AI chips and to cancel ongoing orders and tests.

The directive, reportedly targeting a China-tailored RTX Pro 6000D model, underscores Beijing’s push to cut reliance on U.S. suppliers and accelerate domestic chipmaking capacity.

The news comes as Chinese regulators this week also disclosed a preliminary antitrust finding against Nvidia, further clouding its prospects in the world’s second-largest economy.

Hong Kong-listed shares of Semiconductor Manufacturing International Corp (SMIC) (HK:0981) jumped more than 5%, while Hua Hong Semiconductor (HK:1347) stock surged 10%.

Shenzhen-listed NAURA Technology (SZ:002371), a top supplier of chip manufacturing equipment, climbed 8%, while optical fibre and cable maker Yangtze Optical Fibre (SS:601869) advanced 6%.

Shanghai-listed AI hardware supplier Cambricon Technologies (SS:688256) shares gained 3%.

Hong Kong-listed Baidu (HK:9888) shares advanced 6% after surging 16% in the previous session, extending their stellar rally amid reports that Baidu has begun using its internally developed Kunlun P800 chip to train its AI models.

The surge highlighted investor bets that Beijing’s restrictions on foreign chips will funnel more demand to local suppliers.

China’s drive for technological self-reliance has intensified amid Washington’s tightening export curbs. Semiconductors featured prominently in U.S.-China trade talks held in Madrid this week, as both sides grapple with widening tensions over advanced technology.

Shares of Nvidia slipped in U.S. trading on Wednesday as the company faces growing regulatory scrutiny and mounting pressure from China’s push to develop homegrown AI processors.