NVIDIA’s Upcoming AI GPU for China Expected to Fly Off Shelves Despite $24,000 Price Tag, According to Recent Report

This article does not constitute investment advice. The author holds no positions in the stocks referenced herein.

Despite ongoing efforts by the Chinese government to encourage local sourcing of technology products, NVIDIA’s advanced AI GPUs remain highly sought after by major Chinese corporations. A recent report from Reuters highlights that companies like Alibaba and ByteDance are actively pursuing orders for NVIDIA’s specialized H20 AI GPUs, even willing to spend up to $24, 000 for the latest B30A model tailored specifically for the Chinese market.

Demand for NVIDIA AI GPUs Amid Local Restrictions

The Reuters report builds on previous insights from brokerage firms indicating that many small and medium enterprises in China are favoring NVIDIA GPUs due to superior software integration and enhanced performance in chip deployments. This preference persists even as the Chinese government has initiated policies to promote homegrown semiconductor solutions, dictating that at least 50% of AI chip deployments in public cluster systems must comprise domestic products.

Furthermore, following the lifting of U. S.restrictions affecting NVIDIA and AMD’s GPU sales to China in August, interest in domestic chip manufacturers has surged. For instance, Cambricon has reported a staggering 43-fold increase in revenue in the first half of 2025, attributable to the limited availability of alternative local options aside from Huawei.

Nevertheless, despite the momentum enjoyed by domestic chip firms, NVIDIA remains the preferred choice among Chinese tech giants like ByteDance and Alibaba, according to multiple sources cited by Reuters. These companies are keenly monitoring the licensing status of the H20 GPUs for further procurement.

In addition, AI software developers across China are optimistic about NVIDIA’s new GPU offerings. Following NVIDIA’s recent earnings announcements—though the share price failed to react favorably due to disappointing data center revenue forecasts—CEO Jensen Huang reassured investors during an interview with Fox Business. He expressed confidence in obtaining U. S.governmental approval for new chips designed on the Blackwell architecture aimed at the Chinese market.

Huang’s remarks seemed to be a strategic response to investor concerns regarding NVIDIA’s revenue from China. Reports indicate that demand-side participants are equally enthusiastic, with willingness to pay up to twice the price of the existing H20 AI GPU, which currently ranges from $10, 000 to $12, 000. They anticipate that the anticipated B30A chip could deliver performance enhancements up to six times that of its predecessors.

The report aligns with NVIDIA and AMD’s recent adjustments to their supply chain strategies for developing China-specific AI GPUs. During a recent conference, AMD’s CFO, Jean Hu, announced that her company had ceased initiating new wafer production for its MI300 AI GPU tailored for the Chinese market. Furthermore, AMD’s VP of Investor Relations, Matthew Ramsay, noted that the clarity regarding future licensing for these chips will significantly influence any decisions related to investment increases in Chinese AI chip technology.

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