Nvidia’s recent modifications to its H20 chip for the Chinese market aim to circumvent U.S. export restrictions. However, the company faces significant challenges due to ongoing tensions between the U.S. and China. Nvidia’s CEO, Jensen Huang, has warned of a ‘tremendous loss’ if American firms lose access to China’s $50 billion AI market. Despite concerns, Huang acknowledges China’s rapid advancements in AI technology, which he says are already comparable to those in the U.S. Analysts argue that while losing the Chinese market poses short-term risks, it might encourage diversification in the long term.
— new from Barron’s