Nvidia’s chips are currently in higher demand than it can meet. He added that tightening U.S. chip controls in the future would create additional pressure on Nvidia’s China sales. Chinese companies have been testing samples of Nvidia’s new highest-performing AI chip in the coming lineup, called the H20. Engineers at Chinese technology companies say Nvidia’s chips will remain a purchasing priority over the next 12 months, given Nvidia’s more extensive product ecosystem and as local alternatives continue to be in short supply. “After this current phase of stockpiling is done, Nvidia’s China business will become a sacrificial lamb," he said.

Source: Wall Street Journal January 07, 2024 11:12 UTC