Nvidia developing new China-specific AI chip, more powerful than H20 - report

Nvidia is developing a new Blackwell-based AI chip, the B30A, for the Chinese market, designed to offer roughly half the computing power of its flagship B300 while exceeding the current H20 model. Expected for samples next month, this strategic move aims to navigate U.S. export restrictions, enabling Nvidia to maintain its substantial 13% revenue share from China and counter local competition amidst ongoing geopolitical tensions over advanced AI technology.

Analysis

Nvidia is strategically navigating U.S. export controls by developing new AI chips specifically for the Chinese market, based on its latest Blackwell architecture. The primary new processor, provisionally named B30A, is engineered to be compliant with U.S. restrictions by offering approximately half the computing power of the flagship B300, yet it is expected to surpass the performance of the current H20 model available in China. This move is critical, as China represented 13% of Nvidia's revenue last year, and it directly addresses the risk of ceding market share to domestic rivals like Huawei. The company's strategy appears to have some political tailwind, following comments from U.S. President Donald Trump suggesting an allowance for scaled-down chips. Further diversifying its China-specific portfolio, Nvidia is also preparing a less powerful and cheaper chip, the RTX6000D, for the AI inference market. With samples of the B30A potentially shipping next month and the RTX6000D in September, Nvidia is demonstrating agility in protecting a key revenue stream amidst a challenging geopolitical and regulatory environment.

Key Decisions for Investors

• Investors should view Nvidia's development of new China-specific chips as a significant de-risking action, directly addressing the threat to the 13% of revenue derived from the region and demonstrating a proactive strategy to maintain market leadership.
• Monitor for official U.S. government approval of these new scaled-down chips, as their successful launch is highly contingent on the regulatory green light, which remains a key variable despite recent positive political commentary.
• Track the competitive landscape in China upon the release of the B30A and RTX6000D, as their market adoption and performance relative to domestic alternatives will be a crucial indicator of Nvidia's long-term ability to defend its foothold in this critical market.