July 21 – Nvidia (NASDAQ:NVDA) faces a rocky China comeback as it revives H20 AI chip sales, but warns of constrained supply and shifting geopolitics.
The company informed Chinese customers that H20 stock is limited and it won’t resume production immediately. The H20 is the most powerful AI chip Nvidia is legally permitted to export to China.
U.S. authorities recently lifted export restrictions amid rare-earths talks, but Nvidia cautioned that restocking H20 supply could take up to nine months if it restarts production, citing TSMC shifting its capacity.
The chip’s return sparked a scramble among Chinese AI firms, including Alibaba, Tencent, Baidu, and ByteDance, eager for access, though H20 is technically inferior to Nvidia’s high-end H100 and H200 variants.
This article first appeared on GuruFocus.
