It seems that the U.S. ban on AI chips was bypassed by Chinese entities, including universities and research institutes, according to Reuters. A Reuters review of tender documents showed that Chinese universities and research institutes acquired high-end Nvidia (NASDAQ:NVDA) artificial intelligence chips through resellers.
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The review found that 10 Chinese entities procured these advanced Nvidia chips embedded in server products from Super Micro Computer (NASDAQ:SMCI), Dell Technologies (NYSE:DELL), and Gigabyte Technology Co, after the ban expanded in November last year.
Despite U.S. restrictions, Nvidia’s chip sales to China through third parties aren’t illegal in China. According to the investigation by Reuters, the sellers of these chips were obscure Chinese retailers. It was unclear if these Chinese sellers had used chip stockpiles before the U.S. ban.
Interestingly, Chinese universities and research institutes could use these chips for training models or for advanced research.
SoftBank Boosts AI Investment, Eyes Nvidia Chips
Meanwhile, Japanese tech giant SoftBank (OTC:SFTBY) is planning to invest around $960 million by 2025 to develop a “world-class” Japanese-language-specific generative AI model, according to Nikkei Asia. As a result, training these large language models (LLMs) will require advanced graphics processing units, which SoftBank plans to purchase from Nvidia.
The report stated that this investment is expected to be Japan’s largest of its kind by any company, positioning SoftBank as a company with the most powerful computing capabilities in Japan upon completion.
Is Nvidia a Buy, Sell, or Hold?
Analysts are bullish about NVDA stock, with a Strong Buy consensus rating based on 39 Buys and two Holds. Year-to-date, NVDA has increased by more than 55%, and the average NVDA price target of $1,004.92 implies an upside potential of 26.4% from current levels.
