Nvidia, China, H20 Chip and Taiwan
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Nvidia Corporation's H20 GPU exports to China resume, unlocking billions in revenue and cash flow. Click for my updated look at NVDA stock after this news.
Jensen Huang, the chipmaker’s chief executive, is trying to balance his company’s interests as the United States and China compete for supremacy in artificial intelligence.
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According to Nvidia’s latest annual report, China contributed $17 billion in revenue in the fiscal year ending January 26—about 13% of the company’s total sales. The potential return to the Chinese market is seen as vital to Nvidia's global dominance, especially as domestic players like Huawei aggressively court local developers.
Nvidia CEO Jensen Huang described artificial intelligence models from Chinese firms Deepseek, Alibaba and Tencent as "world class" and said AI was "revolutionising" supply chains, at an exhibition in Beijing on Wednesday.
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Nvidia surges to an all-time high on news it will resume Chip sales to China. US government officials told Nvidia they would green-light export licenses for the H20 artificial intelligence accelerator,
Data center operators in China, which use Nvidia’s H20 chips to crunch data for various AI services, have been struggling to find a local alternative that is as good as the U.S. company’s chips.
Nvidia expects to be able to sell H20 chips in China once again after previously forecasting it would lose out on $8 billion in revenue this quarter related to sales restrictions.