NVIDIA Corporation (NASDAQ:NVDA) is one of the top tech stocks with a strong return on equity. On August 10, it was reported that the company had agreed to pay 15% of its Chinese revenues to the US government as part of an agreement to secure export licenses.

Tencent Holdings Ltd. on Wednesday floated enough artificial intelligence (AI) chip stockpile and many alternatives, playing down the potential impact of pause in supply of Nvidia Corporation's H20 chips.

China has reportedly urged local companies to not buy American semiconductors, especially those made by Nvidia and AMD. The curbs come weeks after Donald Trump lifted the export ban on Nvidia's H20 chips to China.

Just hours after President Trump confirmed a new deal that will see Nvidia pay 15% of sales revenue to the government in exchange for H20 export licenses, a new Bloomberg report claims that China's government has been urging local companies to avoid using the chips for weeks.

Beijing has reportedly sent notices to a range of firms, including state enterprises and private companies, discouraging purchases of the H20, Nvidia’s less-advanced AI accelerator approved for sale i