Chinese internet companies hoard billions of dollars worth of US-made AI chips as sanctions kicked in, posing risks to Nvidia's revenue and stock.

Chinas leading tech firms, including ByteDance, Alibaba (HK:9988), and Tencent (HK:0700), have reportedly stockpiled close to one million units of Nvidias (NASDAQ:NVDA) H20 AI chips in anticipation of tightened U.

Nvidia's AI chips have been a key focus of U.S. export controls as U.S. officials have moved to keep the most advanced chips from being sold to China. Almost immediately after those controls were implemented, Nvidia began designing chips that would come as close as possible to U.S. limits while still being legal to sell in China.