Core Viewpoint - Despite strong opposition from the Chinese government regarding the purchase of Nvidia's AI chips, companies like Alibaba and ByteDance remain eager to acquire these chips, particularly the H20 model, which Nvidia has recently regained permission to sell in China [2][3]. Group 1: Demand for Nvidia Chips - Chinese tech companies are keen on securing orders for the Nvidia H20 model, which is priced between $10,000 and $12,000 [2]. - The upcoming B30A chip, expected to be priced at double that of the H20, is anticipated to have six times the power of the H20 [2]. - Nvidia's chips are considered superior to domestic alternatives from companies like Huawei and Cambricon, maintaining strong demand despite regulatory pressures [3]. Group 2: Regulatory Environment - The U.S. has relaxed its restrictions on Nvidia's sales of advanced chips to China, with Nvidia agreeing to pay 15% of its H20 revenue to the U.S. government [3]. - Chinese authorities have summoned companies like Tencent and ByteDance to explain their purchases of H20 chips, expressing concerns over information risks, but have not mandated a halt to these purchases [3]. Group 3: Nvidia's Market Position - Nvidia's stock has seen a decline of 6% following a lukewarm quarterly sales forecast that excluded potential revenue from China [4]. - The company has a stockpile of 600,000 to 700,000 H20 chips and is working with TSMC to increase production [4]. - Nvidia's CEO has assured Chinese clients about the supply of H20 chips and indicated that the Chinese market could be worth $50 billion if competitive products are offered [4].