Strong demand for Nvidia's H20 chips in China due to US export restrictions, positive for Nvidia stock.

From Nasdaq: 2025-04-02 11:57:00

In the first quarter, Chinese companies have ordered $16 billion worth of Nvidia’s H20 server chips, showcasing strong demand for advanced AI processors despite US export controls. ByteDance, Alibaba Group, and Tencent Holdings are among the major players shifting to available technology due to restrictions on Nvidia’s latest chips.

Investors see the surge in orders as China’s push for cutting-edge AI capability amid geopolitical tensions. The H20 chip is crucial for meeting high demand, raising optimism for future growth but also concerns about potential supply constraints. The chip remains a key asset in a market where demand remains high.

Chinese tech giants are driving a $16 billion order surge for Nvidia’s H20 chips, as US export restrictions push demand towards the most advanced option available in China. The H20 chip is critical for sustaining China’s AI development under export controls, with potential supply constraints looming if demand continues to outpace production.

Nvidia’s revenue from China is essential amid trade restrictions, and scaling production will be crucial to meet the increasing global demand for AI chips. The $16 billion order surge for Nvidia’s H20 chips highlights robust demand and reinforces Nvidia’s leadership in the semiconductor market.

The expansive order book reflects resilient demand for advanced AI processors in China, with the H20 chip playing a crucial role in the nation’s tech strategy. Nvidia may need to scale production capabilities to meet rising demand without facing supply bottlenecks, shaping the competitive landscape for semiconductor technology.



Read more at Nasdaq: Global AI Race: Nvidia’s (NVDA) H20 Chip Orders Signal Strategic Shifts in China