Tai Mei Ti A P P·2025-07-16 03:09Core Viewpoint - The U.S. government has relaxed export restrictions on AI chips, allowing NVIDIA and AMD to sell their respective H20 and MI308 AI chips in China, indicating a shift in U.S.-China trade relations and a strategic move to maintain U.S. technological dominance in the AI sector [2][3][11]. Group 1: Company Developments - AMD plans to resume shipments of its MI308 AI chip to China following the approval of its export license application by the U.S. government [2]. - NVIDIA has announced the resumption of H20 chip sales in China, with CEO Jensen Huang expressing optimism about the market potential [11]. - Both companies experienced significant stock price increases following the news, with AMD's stock rising by 8.5% and NVIDIA's by 5% on July 15, leading to a combined market value increase of over $170 billion [5]. Group 2: Market Dynamics - The decision to allow sales of these AI chips is linked to ongoing U.S.-China trade negotiations, particularly concerning rare earth materials [3]. - NVIDIA's H20 chip is a "special version" designed for the Chinese market, which, while lower in performance compared to the latest models, still outperforms most domestic AI chips [7][10]. - The Chinese market is crucial for NVIDIA, with revenue from the region reaching $17.11 billion in the fiscal year ending January 2024, a 66% increase from the previous year [10]. Group 3: Strategic Implications - U.S. officials believe that allowing Chinese companies access to NVIDIA's technology will create dependency on American tech, thereby maintaining U.S. market influence [3][4]. - The strategy involves selling "just adequate" products to ensure that Chinese developers remain reliant on U.S. technology ecosystems [4][13]. - NVIDIA is expected to introduce a new B30 chip in 2025, which will be a lower-performance version aimed at the Chinese market, further solidifying its presence despite the competitive landscape [15][16]. Group 4: Industry Outlook - The Chinese AI chip market is projected to grow significantly, with estimates suggesting it could reach $50 billion in the next few years [11]. - The domestic AI chip market is also expanding, with predictions indicating a compound annual growth rate of 53.7% from 2025 to 2029 [17]. - The GPU market in China is expected to grow from approximately 384.77 billion yuan in 2020 to 1,638.17 billion yuan by 2024, highlighting the increasing demand for AI computing solutions [18].