Nvidia's China chip sales continue after ceo's $1 million mar-a-lago dinner

2025-04-10 nvidia

Washington, D.C., Thursday, 10 April 2025.
Nvidia may continue selling its H20 GPUs in China. This follows CEO Jensen Huang’s attendance at a $1 million per-head dinner at Mar-a-Lago. The decision comes despite reported plans to tighten export restrictions. Chinese firms have already purchased $16 billion worth of these chips. This raises questions about the influence of high-dollar events on trade policy. It also highlights the ongoing tensions surrounding technology exports and international relations.

Stock market impact

The continuation of H20 chip sales in China could positively impact Nvidia’s stock (NVDA:NASDAQ). The Chinese market is a significant revenue source for Nvidia. Chinese firms purchased $16 billion worth of H20 chips in the first three months of 2025 [1][5]. Maintaining access to this market ensures a steady revenue stream [1]. However, semiconductor stocks are experiencing volatility due to recent CPI data and Federal Reserve policy [4]. This introduces uncertainty despite the positive news regarding China sales [4].

Revenue potential and market position

Nvidia’s ability to sell H20 chips in China bolsters its market position. The H20 is the most advanced AI chip Nvidia can legally export to China [2]. While China is developing domestic alternatives, many of these companies are on the US Entity List, limiting their manufacturing capabilities [2]. Nvidia’s CEO, Jensen Huang, stated that Nvidia has significantly contributed to the modernization of China’s dynamic market [1]. He also noted over 1.5 million developers in China use CUDA and Nvidia collaborates with over 3,000 startups there [1].

Competitive advantage and strategic considerations

The decision to allow continued H20 sales gives Nvidia a competitive edge. Restricted access to US technology could accelerate innovation in China’s domestic semiconductor industry [5]. Nvidia has been adapting its products to comply with US export regulations. It is thought to be preparing new versions of its Blackwell parts [2]. However, some US politicians are urging stricter controls on AI chip exports to prevent China from gaining a technological advantage [5]. Representative Raja Krishnamoorthi stated that the US has no time to waste in restricting chip exports [5].

Geopolitical implications and risks

The situation highlights the complex interplay of trade, technology, and geopolitics. The US is attempting to curb China’s access to advanced chips used in AI and supercomputing [2]. Meanwhile, China is pushing for advancements in its domestic chip manufacturing [1][4]. TSMC, a major chip manufacturer, is under scrutiny for potentially violating US export controls by supplying chips to Huawei [7][8]. These tensions could lead to further restrictions and impact Nvidia’s long-term prospects in the Chinese market [2][3].

Bronnen

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