Nvidia placed orders for 300,000 H20 chipsets with contract manufacturer TSMC last week, two sources said, with one of them adding that strong Chinese demand had led the U.S. firm to change its mind about just relying on its existing stockpile.

NVIDIA has ordered 300,000 more H20 AI GPUs from TSMC just weeks after the ban on selling to China was reversed. That's great news for NVIDIA, but some national security experts are sounding the alarm.

Nvidia (NASDAQ:NVDA) last week ordered 300,000 H20 AI chips from Taiwan Semiconductor Manufacturing (NYSE:TSM) to bolster its supply for China, Reuters sources say. This fresh order adds to an existing stockpile of roughly 600,