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Nvidia Corp. (NVDA) stock trended on Stocktwits late Thursday amid a new report that said the Jensen Huang-led company has halted orders of its H20 AI chip, semiconductors it produces specifically for the Chinese market, in compliance with the U.S. export controls.

The Santa Clara, California-based company has asked its component suppliers to pause production related to the H20 chip, according to an Information report, citing two people with direct knowledge of the communications.

The report said the action came after China laid down restrictions on the use of Nvidia’s chips manufactured exclusively for the Chinese market to sidestep the curbs imposed by the previous Biden administration last year.

Nvidia stock has gained 30% this year, although it has been on a three-session losing streak recently, weighed down by the uncertainty around the U.S.’ China restrictions and rising fears concerning an AI bubble burst.

A Bloomberg report said last week that Chinese authorities have sent notices to a range of firms, forbidding the use of the H20 chips, particularly for any government or national security-related work by state enterprises or private companies.

After the U.S. government tightened its China chip curbs, bringing the H20 under the banned list, Huang announced in July that the White House gave assurances that it would permit the resumption of its shipments.

Reports suggested that President Donald Trump’s administration had bargained for a quid pro quo, seeking a 15% share of the China-specific chip revenues from both Nvidia and peer AMD (AMD).

Also, Trump later told reporters that his administration would permit the export of a scaled-down version of new China chips based on Nvidia’s most advanced Blackwell architecture. 

Earlier this week, Reuters reported that Nvidia was readying a chip, tentatively named B30A, for the Chinese market, as well as a second Blackwell-based China chip, the RTX6000D, focused on AI inference tasks.

More clarity could emerge when Nvidia reports its second-quarter results on Wednesday after the market closes. 

Analysts, on average, expect the AI frontrunner to report adjusted earnings per share (EPS) of $1 and revenue of $45.88 billion, according to estimates compiled by Fiscal.ai. This compares to the year-ago numbers of $0.68 and $30.04 billion, respectively.

Nvidia flagged, while it reported its first-quarter results, that its second-quarter revenue guidance of $45 billion, plus or minus 2%, included $8 billion in H20 related charges.

Wall Street is optimistic that Nvidia will report strong quarterly results, upping its price targets ahead of the report.

A watcher on Stocktwits expressed fears that the stock would drop to $165 on Friday.

Another user, who bought “$180/22” calls, also expressed disappointment.

Nvidia’s stock fell over 2% in after-hours trading on Thursday following the report of H20 ordering halt.

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