China Chip Stocks Fall on Reports Beijing May Allow Nvidia AI Sales

Key Facts

Chinese chipmaking stocks tumbled following reports that Beijing is considering allowing local tech firms to purchase high-end Nvidia chips. Investing.com reported that this potential policy shift suggests the Chinese government may prioritize AI development capabilities over domestic chip substitution, potentially benefiting companies like Alibaba and ByteDance.

NVDA closed at $225.07 on September 25, 2026, as the prospect of regained market access in China emerged. This development threatens the market share of local Chinese semiconductor firms that previously benefited from domestic-only mandates. Among industry peers, AMD closed at $630.63 and TSM closed at $450.61 on September 25, 2026.