06:00 AM EDT, 08/12/2025 (MT Newswires) -- Chinese authorities have urged local firms to avoid using Nvidia's ( NVDA ) H20 chips, especially for government-related activities, Bloomberg reported Tuesday, citing unnamed people familiar with the matter.

According to the report, Chinese officials have sent notices to companies discouraging them from using "less-advanced semiconductors," particularly the use of H20s for government or national security-related work.

The report also said that the Chinese government's push may also affect Advanced Micro Devices ( AMD ) but noted that it remained unclear if there was any specific mention of the MI308 chip.

"As both governments recognize, the H20 is not a military product or for government infrastructure. China has ample supply of domestic chips to meet its needs," a spokesperson for Nvidia ( NVDA ) said in an emailed statement to MT Newswires. "It won't and never has relied on Americans chips for government operations, just like the U.S. government would not rely on chips from China."

Advanced Micro Devices ( AMD ) did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)