From Financial Modeling Prep: 2025-05-19 06:27:00

Nvidia is set to ship a downgraded AI processor to China, lacking high-bandwidth memory and based on previous-gen architecture, to adhere to U.S. export restrictions. A modified Blackwell chip without HBM is planned for 2025, maintaining Nvidia’s 14% revenue from China.

The new China-bound chip will have reduced performance and sensitivity to export controls due to the absence of HBM modules.

Nvidia plans to release a tailored Blackwell design without HBM in 2025, ensuring compliance with U.S. regulations while providing the latest architecture to Chinese customers.

By offering compliant variants, Nvidia aims to retain its market share in China and defend against local competition like Huawei, which could challenge its position in the AI market.

Nvidia’s financial strength, with a AAA corporate rating and over $40 billion in cash reserves, positions it well to absorb any margin impact from tailored product lines and R&D investments.

The dual-tier chip strategy allows Nvidia to navigate compliance issues in China while maintaining pricing power, but the company will need to stay vigilant against advancements from local competitors over the next 12-18 months.



Read more at Financial Modeling Prep:: Nvidia’s New China AI Chips: Navigating U.S. Expor…