On July 31, the agency summoned Nvidia executives over alleged “serious security issues”. In a statement, the CAC claimed that US AI experts had revealed Nvidia’s chips have location tracking and can be shut down remotely — a claim strongly disputed by Nvidia.

Nvidia is reportedly working on a new AI chip for the Chinese market, which is expected to surpass the capabilities of its current H20 model. This development is based on the company's latest Blackwell architecture,

Wall Street faded on Tuesday following drops for Nvidia and other stars that have been riding the mania surrounding artificial-intelligence technology.

Insatiable” AI demand and revenue opportunities from China are leading analysts to raise their price targets as Nvidia prepares to report earnings.

The heaviest weight on the market was Nvidia, whose chips are powering much of the move into AI. It sank 3.5%.