Nvidia(US:NVDA) Xin Lang Cai Jing·2025-08-05 04:51Core Viewpoint - Recent discussions between Chinese authorities and NVIDIA regarding security risks associated with the H20 computing chips have not deterred private Chinese enterprises from aggressively purchasing these chips, highlighting a significant demand despite concerns over potential backdoor vulnerabilities [2]. Group 1: NVIDIA's Sales in China - NVIDIA's annual report indicates that China is the fourth-largest sales region for the company, following the United States and Singapore [2]. - In the fiscal year ending January 2024, NVIDIA's revenue from China reached $17.108 billion, marking a record high and a 66% increase from $10.306 billion in the previous year [2]. Group 2: Private Enterprises' Purchasing Behavior - Private internet giants in China are primarily responsible for the majority of NVIDIA's sales in the country, as state-owned enterprises are less likely to purchase these chips [2]. - A significant portion of the demand for NVIDIA's H20 chips comes from private internet companies, which are reportedly indifferent to the security concerns raised by the government [2]. Group 3: Specific Purchases and Market Impact - According to Omdia's report for the end of 2024, several Chinese companies have made substantial purchases of NVIDIA's Hopper series chips, including 230,000 units of the H20 chip by a major internet giant in the video market [4]. - Four major Chinese internet companies accounted for over 80% of the total demand for NVIDIA chips in China in 2024, with expectations of continued large-scale purchases in 2025 [5].