Nvidia recently received positive news related to its business in China, indicating the potential for new records and an optimistic market reaction to the future development of AI chips.
Nvidia and China: An Overview
- Restart of H20 Sales: Nvidia has announced that it will resume the sale of its H20 GPU chips to China. To this end, the necessary approvals are being sought from the US government, and deliveries are expected to begin shortly thereafter.
- New RTX Pro GPU: Nvidia has introduced an RTX Pro GPU developed specifically for the Chinese market. This GPU is fully compliant with US export regulations and is suitable for applications such as digital twins in areas like smart factories and logistics.
- Market Significance of China: China is a crucial market for Nvidia, generating 17 billion USD in revenue during the last fiscal year, accounting for about 13% of the company’s total revenues.
Challenges and Opportunities
- Export Restrictions: Nvidia has suffered significant losses in the past due to export restrictions imposed by the US government, including a write-down loss of 5.5 billion USD and forgoing 15 billion USD in potential sales.
- Future Prospects: Despite the challenges, Nvidia still sees great potential in the Chinese market. The introduction of new, compliant products could help strengthen relationships with Chinese customers and promote growth.
Market Reaction and Future Outlook
- Stock Market: Nvidia has reached historic highs on the stock market this year and has further expanded its position in AI technologies.
- Global AI Strategy: Nvidia is focusing on partnerships worldwide to strengthen its AI infrastructure, which includes investments in regions like the Middle East and Europe, where AI development is being promoted.
Overall, the resumption of H20 sales and the introduction of new products indicate a positive development for Nvidia in the Chinese market, enhancing the potential for new records and an optimistic market reaction.