NVIDIA’s AI GPUs for China in High Demand as Orders Surge

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NVIDIA Corporation, a leading chip designer, is currently experiencing a surge in demand for its GPUs in China. This follows the company’s announcement that it has resumed accepting orders for these chips, anticipating that the Trump administration will grant necessary export licenses. CEO Jensen Huang’s visit to Beijing marks a significant shift, following earlier restrictions that limited NVIDIA’s capacity to sell products to China, particularly the H20 chips.

NVIDIA Stock Rises 3.4% Amid Positive Outlook on China Sales

Following NVIDIA’s optimistic assessment regarding its ability to resume sales to China, both NVIDIA and its rival AMD experienced an uptick in their stock prices at the market’s opening. NVIDIA’s shares climbed by 4.4% after it announced the acceptance of orders for the H20 AI GPU tailored for the Chinese market. The firm expressed confidence that export licenses will soon be authorized by the Trump administration for its AI chips.

Although NVIDIA did not explicitly state that the US had relaxed export licensing requirements for the H20 AI GPUs, the announcement suggests that shipments to Chinese companies could commence shortly. Reports indicate that prominent Chinese technology firms remain heavily dependent on NVIDIA’s superior performance and software advantages. This dependency has prompted competitors like Huawei to enhance their own AI chip offerings.

In a related development, the Malaysian government has introduced its own export regulations concerning advanced AI chips. These new rules mandate that companies must notify the government at least 30 days prior to any shipments of such chips outside of Malaysia.

According to sources quoted by Reuters, Chinese firms are hurrying to place orders for NVIDIA’s AI GPUs as the company begins accepting them again. This rush comes amidst a chip shortage in China and as firms seek to stockpile supplies in case the US government tightens licensing rules once more.

After receiving orders, NVIDIA will relay the information to the US government for approval. Chinese corporations like ByteDance and Tencent are reportedly also submitting their requests for the AI chips. The approval status of these applications remains uncertain, and it is possible that the Trump administration may leverage them for future negotiations with China.

NVIDIA’s positive outlook on sales in China is the culmination of CEO Jensen Huang’s efforts to persuade US policymakers that restrictions on exports could inadvertently bolster the domestic AI sector in China. Huang argues that if China relies on alternative suppliers like Huawei for AI chips, the US may forfeit its leading position in the global AI landscape. Nonetheless, advocates for stringent sanctions caution that supplying advanced AI chips to China could enable military applications that may jeopardize US national security.

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