Potential US$5b basket for Nvidia from H20 AI chips sale to China

Sales of Nvidia’s H20 artificial intelligence chips in China could come up to between US$2 billion (HK$15.6 billion) and US$5 billion in the third quarter if geopolitical frictions subside, with further upside possible from new orders, says the company’s chief financial officer Colette Kress.

The company, Kress said, will continue to press the US government to approve exports of its Blackwell chips to China, adding that some Chinese clients have already had H20 shipments approved, although deliveries have not yet begun.

Nvidia said it sold no H20 chips to China during the second quarter but released US$180 million in inventory to an overseas customer, generating US$650 million in sales.

China could represent a US$50 billion opportunity for the company this year if it is able to introduce competitive products to the market, Kress added.

STAFF REPORTER