According to an exclusive report by Reuters, chip major Nvidia (NASDAQ:NVDA) has started taking pre-orders for its AI chip customized for China and has priced it similarly to an AI chip from Huawei. The company has developed the H20 graphics card for China as the U.S. has banned high-end chip exports to the country.
The report stated that the H20 graphics card is less powerful than the company’s flagship H100 and China-specific H800 and could possibly trail Huawei’s Ascend 910B in some aspects. Nvidia has priced the chip in a range of $12,000 to $15,000 for distributors. However, some distributors have started advertising the chips with a significant markup of about $15,320 or 110,000 yuan. In contrast, Huawei’s 910B chip is being sold for around 120,000 yuan.
Nvidia faces rising competition from domestic rivals like Huawei, whose 910B chip is popular among customers. Distributors have told customers that they will be able to deliver the H20 chip in small batches in the first quarter and in larger quantities in the second quarter.
Reuters had stated last month that Nvidia plans mass production of the H20 in the second quarter. The company is also planning two other China-specific chips, L20 and L2.
What is the Target Price for NVDA?
Analysts remain bullish about NVDA stock with a Strong Buy consensus rating based on 34 Buys and four Holds. NVDA has soared by more than 100% over the past year, and the average NVDA price target of $675.40 implies an upside potential of 9.77% at current levels.
