15 Januari 2026
Nvidia has announced that it will launch a new, lower-cost artificial intelligence (AI) chip specifically aimed at the Chinese market. The development comes after restrictions were placed on the export of its higher-end model. According to reports, mass production of these new AI chips will begin in June and they will be part of the company’s latest generation of chips.
The expected retail price is between $6.500 and $8.000, down considerably from the $10.000 to $12.000 the recently scaled-down H20 model cost. The price drop is due to lower specifications and simpler product requirements. An Nvidia spokesperson said the company is still evaluating its limited options. “Until we finalize a new product design and receive U.S. government approval, we are effectively cut off from China’s $50 billion data center market,” she said.
China is a major market for Nvidia, accounting for 13% of total sales in the last financial year. However, Nvidia’s share of China has fallen significantly, from 95% before 2022, when U.S. export restrictions first went into effect, to 50% today. Jensen Huang, CEO Nvidia, said in an interview on Taiwanese television: “We will continue our efforts to optimize compliant products and continue to serve the Chinese market.”
The new chip is designed to meet current U.S. bandwidth limits of 1,7 terabytes per second. This is Nvidia’s third attempt at developing chips that meet the demands of the Chinese market. Nvidia’s biggest competitor is Shenzhen-based Huawei, which is currently testing and preparing for shipment a new AI chip called the Ascend 910D.
The announcement about the new chip comes just days ahead of the company's quarterly results, which are scheduled to be reported on May 28. The chipmaker's stock closed down about 3% last week, ending a streak of four straight weeks of gains.
Analysts on average expect Nvidia to report quarterly revenue of $43,4 billion, up 66% year-over-year. Adjusted net income is also forecast to be $21,3 billion. According to Oppenheimer analysts, despite the loss of H20 sales to China, there is still room for growth.
Why is Nvidia launching a cheaper AI chip for China?
Nvidia is launching this chip to meet the specific demands of the Chinese market, especially after the restrictions on export of its more expensive models that represent significant revenues.
What are the implications of US export restrictions for Nvidia?
The US export restrictions have led to a significant drop in Nvidia's market share in China, from 95% to 50%, forcing the company to develop products that comply with the new regulations.
What are the expectations for Nvidia's quarterly results?
Analysts predict that Nvidia will report quarterly revenue of $43,4 billion, which means the company will be course is poised for strong growth despite challenges in the Chinese market.
In conclusion, the strategic launch of Nvidia's new AI chip illustrates not only the company's resilience in a challenging market environment, but also the continued dynamism and growth within the AI sector, especially in the context of global trade restrictions.
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