TMTPOST -- Nvidia Corporation stock   tumbled   3.5%   on   Tuesday,   wiping   out $155   billion in market capitalization.   Nvidia stock   logged its   worst day since April 21   and   seemingly   also resulted from   a broader   market selloff   as the drop four   months ago. A   recent report   about   new China-tailored   artificial intelligence ( AI )   chip   was under development   didn ’ t help   boost market sentiment.  

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Nvidia   is   working on a new AI chip specifically for the Chinese market that is expected to outperform the H20 model it is currently allowed to sell there, Reuters earlier Tuesday   cited sources.The chip will be based on Nvidia ’ s latest Blackwell architecture and is tentatively referred to as the B30A,   according to the   report.

The new B30A will employ a single-die design, delivering roughly half the raw computing power of Nvidia ’ s high-end B300,   which uses   a   dual-die   configuration. The new chip will also carry high-bandwidth memory and NVLink support, similar to the H20, but with upgraded performance. Nvidia reportedly aims to send samples to Chinese customers as soon as next month.

Nvidia   following the report   said   it   is evaluating "a variety of products for our roadmap, so that we can be prepared to compete to the extent that governments allow."   "Everything we offer is with the full approval of the applicable authorities and designed solely for beneficial commercial use,"   the   AI chip giant added.

U.S.   President Donald   Trump last week confirmed reports   that Nvidia   will be allowed   to sell certain AI chips to China, in exchange   for   giving   the U.S. government   15% of the revenue they   get   from   the   sales. He said he originally asked   Nvidia for   a 20%   cut of its chip sales   to China, but lowered   the share of revenue   to 15% after its CEO Jensen Huang negotiated with   him.  

Trump   said   on August   11 he   wouldn ’ t allow   Blackwell   to be sold   to China without   significant downgrade, but indicated he could allow the company to sell the scaled-down Blackwell.   "Jensen also has the new chip, the Blackwell. A somewhat enhanced-in-a-negative-way Blackwell. In other words, take 30% to 50% off of it,"   said Trump.   "I think he ’ s coming to see me again about that, but that will be an unenhanced version of the big one," he continued.  

U.S. Commerce Secretary Howard Lutnick on Tuesday praised   Nvidia   CEO Huang   and said   it   is   unsurprising for   the company   seeking launch of a new   chip   specially   for sale   to China. "Of course ( CEO Huang ) would like to sell a new chip to China,"   Lutnick said when asked about the Reuters report   in a CNBC interview. "I'm sure he's pitching the president all the time."   "I ’ ve listened to him pitch the president, and the president listens to our great technology companies, and he ’ ll decide how he wants to play it,"   he said.