Nvidia forecast to bounce back in China to make $12B selling GPUs
Nvidia is expected to generate $12 billion in GPU sales in China this year, despite U.S. trade restrictions, with over 1 million H20 GPUs shipped, nearly doubling Huawei's sales.
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Nvidia is projected to generate $12 billion in revenue from GPU sales in China this year, despite U.S. trade restrictions aimed at limiting China's AI advancements. The company is expected to ship over 1 million units of its H20 GPU, priced between $12,000 and $13,000 each. This forecast, provided by research firm SemiAnalysis, suggests that Nvidia's sales in China could nearly double those of Huawei's competing Ascend 910B accelerator. The H20 GPU is designed to comply with U.S. regulations that restrict performance, while Huawei's Ascend 910B is manufactured by SMIC using a 7nm process. Nvidia's sales in China had previously accounted for 20-25% of its revenue but dropped to a "mid-single digit percentage" due to export restrictions. The company's fiscal Q1 2025 revenue reached $26 billion, a 262% increase from the previous year. Despite the restrictions, Huawei Cloud's CEO expressed confidence that innovation would mitigate the impact of a shortage of advanced AI accelerators. Similarly, Kingsoft Cloud's CFO noted that while Chinese firms may lack the budget for high-end AI chips, rapid infrastructure development has created a strong foundation for AI training and inference. This situation highlights the ongoing tension between U.S. efforts to curb China's technological advancements and the resilience of Chinese companies in adapting to these challenges.
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