Nvidia(US:NVDA) Guan Cha Zhe Wang·2025-07-17 01:00Core Viewpoint - Nvidia's CEO Jensen Huang expressed optimism about the market prospects for the H20 chip and hopes to sell more advanced chips to China, highlighting the rapid technological innovation in the country [1][4]. Group 1: H20 Chip and Market Dynamics - The H20 chip was specifically developed for the Chinese market in response to U.S. export restrictions, and Nvidia has received approval to resume sales of this chip to China, which positively impacted Nvidia's stock price [2][9]. - Huang acknowledged that while the H20 chip is not Nvidia's best product, it still performs exceptionally well in inference tasks, and he believes it will be very successful in China due to its memory bandwidth characteristics [5][8]. - The lifting of the export ban on the H20 chip is seen as part of broader trade negotiations between the U.S. and China, with Huang emphasizing that the decision is beyond Nvidia's control [5][9]. Group 2: Strategic Importance of China - China accounted for $17 billion in revenue for Nvidia in the last fiscal year, representing approximately 13% of the company's total sales, underscoring the significance of the Chinese market for Nvidia's growth [8]. - Huang has been advocating for U.S. companies to access the Chinese semiconductor market, arguing that restrictions could lead to an unfair advantage for local competitors [9][10]. - The recent easing of restrictions allows Chinese AI companies, such as DeepSeek and Alibaba, to continue utilizing Nvidia chips, which is crucial for their AI service development and competitiveness against U.S. firms [10]. Group 3: Technological Innovation - Huang praised the DeepSeek R1 model as "revolutionary," noting its widespread application in various fields, including healthcare and medical imaging [6][8]. - The introduction of the new RTX Pro chip is aimed at powering humanoid robot development, aligning with China's numerous robotics and smart factory projects [5].