Nvidia (NVDA) is developing a version of its new “Blackwell” AI chips specifically for China, according to an exclusive Reuters report. These chips are expected to adhere to U.S. export controls. Earlier this year, Nvidia introduced its “Blackwell” AI chip series, which is anticipated to begin mass production later this year.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The B200 chip in this series is 30 times faster at certain tasks than its predecessors. The China-specific Nvidia chip is likely to be named the “B20,” and Nvidia plans to partner with Inspur for its launch and distribution in the Chinese market.
Tightening U.S. Export Controls on China
Since last year, the U.S. has been tightening controls on chip exports to China. In response, Nvidia has developed three chip models specifically for the Chinese market since these restrictions were implemented. The increasing export controls have allowed local Chinese chip manufacturers, such as Huawei, to gain ground in the domestic market for advanced AI chips.
Nvidia’s China Market Significance
China accounted for more than 15% of NVDA’s sales in FY23, which is a 9% drop from China’s 26% share of Nvidia’s revenues two years ago.
Despite initial challenges, sales of Nvidia’s H20 chip, designed specifically for China, are rising. Over 1 million processors are expected to be sold in China this year, valued at more than $12 billion, according to research firm SemiAnalysis. It is widely anticipated that U.S. pressure on semiconductor exports will continue, potentially impacting global chip stocks.
What Is the Target Price for NVDA?
Analysts remain bullish about NVDA stock, with a Strong Buy consensus rating based on 37 Buys and four Holds. Over the past year, NVDA has skyrocketed by more than 100%, and the average NVDA price target of $140.70 implies an upside potential of 19.3% from current levels.
