NVIDIA Corporation NVDA shares are moving lower on Wednesday amid reports indicating that Donald Trump administration officials are discussing further restricting NVIDIA’s sales to China.

What To Know: According to Bloomberg, citing sources familiar with the matter, officials are exploring additional restrictions on NVIDIA’s sales to China, with a particular focus on limiting the sale of H20 chips.

NVIDIA’s H20 chips are reduced semiconductors designed to comply with restrictions imposed by the U.S. government on chip exports to China. These chips are capable of hosting artificial intelligence software while adhering to these export limitations.

According to the report, it's unlikely a decision on chip restrictions will be made soon, as the Trump administration continues to complete its staffing. During his confirmation hearing, Commerce Secretary nominee Howard Lutnick appeared supportive of chip controls.

NVIDIA said it, "is ready to work with the administration as it pursues its own approach to AI." Furthermore, the company has argued that the restrictions will undermine U.S. companies and further China’s drive for technological independence, which goes against the objectives of the trade actions.

If the Trump administration moves forward with additional chip restrictions, it could impact NVIDIA’s revenue, as China is the largest market for semiconductors.

Earlier this week, NVIDIA and other companies in the semiconductor industry and beyond saw declines due to heightened competition from China in the AI sector. Chinese startup DeepSeek launched its own AI model, reportedly on par with OpenAI’s ChatGPT.

NVDA Price Action: At the time of writing, Nvidia stock is trading 4.9% lower at $121.63 at the time of publication Wednesday, according to data from Benzinga Pro.

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