Chinese firms rush to buy Nvidia AI chips as sales set to resume: Report
UNITED STATES, JUL 15 – Nvidia secured US approval to resume sales of its top inference AI chip, critical to Chinese AI and industrial automation, after lifting export restrictions impacting $15 billion revenue.
- Nvidia intends to restart sales of its H20 AI chips to China soon following the U.S. government's decision to lift export restrictions in April 2025, which coincides with a period of improved relations between the two countries.
- The resumption follows export curbs imposed in late 2023 on national security grounds that stopped Nvidia from selling the H20 GPU, forcing a $5.5 billion inventory write-off and $15 billion in lost sales.
- Companies in China have quickly moved to submit orders for the H20 chips, which were designed specifically for the Chinese market and are intended to support artificial intelligence applications.
- Analysts estimate that recovering $15 billion to $20 billion in China revenue could boost Nvidia's earnings per share by 40 to 50 cents, prompting Wall Street firms to raise price targets as high as $235 per share.
- Resuming China sales could restore Nvidia’s significant market share and limit structural risks amid high US-China uncertainties, while Nvidia's CEO Jensen Huang highlights China as critical to future growth.
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The listing of Nvidia's shares recorded a remarkable increase of 4.2%, reaching almost $171 at the beginning of the day in New York.This increase led to the company's market capitalization of close to $4.2 trillion, an achievement highlighted by its CEO, Jensen Huang.According to the original report, Nvidia plans to resume sales of its artificial intelligence chips in the Chinese market, after receiving approval from the Trump administration for…
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Leaning Left8Leaning Right8Center13Last UpdatedBias Distribution45% Center
Bias Distribution
- 45% of the sources are Center
45% Center
L 28%
C 45%
R 28%
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