Nvidia stock jumps to record highs, here's why

Nvidia and China Market - Nvidia expects to resume H20 chip sales in China after CEO's meeting with President Trump [1] - The H20 ban was a $25 billion headwind to revenues in Q1 and is expected to be an $8 billion headwind in Q2 [3] - Historically, China accounted for 20-25% of Nvidia's data center business, but it dropped to zero due to the H20 ban [3] - Nvidia anticipates China to potentially return to 10-15% of its data center business, similar to pre-H20 ban levels [4] - Nvidia has developed the RTX Pro GPU, compliant with the China market [4] Competition and Innovation - China is innovating in chip development, but lags behind Nvidia and lacks Nvidia's ecosystem [5][6] - Nvidia needs to balance maintaining competitiveness and preventing China from accelerating its AI capabilities [7] - Custom silicon development (ASICs) by hyperscalers faces challenges in flexibility and usability [13][14][15] - Despite some companies developing their own chips, they still purchase GPUs, indicating that both will coexist [16] Market Outlook and Demand - Strong demand signals exist, with hyperscalers planning for millions of XPUs by 2027 [8][9] - Broadcom and TSMC project strong growth continuing until the end of the decade [9] - The global economy's replatforming and increasing capital intensity will fuel investments in XPUs and Nvidia [11]