Nvidia (NVDA) is experiencing significant demand for its H20 AI chips in China, driven by the rising adoption of DeepSeek’s cost-effective AI models. Major Chinese tech firms like Alibaba, Tencent, and ByteDance are purchasing these chips for cloud computing and customer-facing AI services. Smaller companies in healthcare and education are also adopting DeepSeek’s models, further boosting Nvidia’s sales. Analysts estimate Nvidia could sell around one million H20 chips in 2024, generating over $12 billion in revenue. The H20 chips comply with U.S. export controls, which have restricted advanced chip exports to China since 2022. Nvidia’s Q4FY25 earnings, set for release soon, will be closely watched as the company maintains a Strong Buy consensus rating with a projected 37.3% upside potential. — news from TipRanks
