The global artificial intelligence (AI) giant based in the US, Nvidia (Nasdaq: NVDA), has announced it is set to begin mass producing its new H20 AI chip in H2 of 2024, specifically targeted toward the Chinese technology market. The chip has been designed to align with both US and Chinese exportation laws and will hit markets in October of this year.
Nvidia set to mass produce H20 chip aimed at Chinese market
According to a Reuters report, the H20 chip launch was originally scheduled for November 2023; however, due to integration challenges faced by several different server manufacturers, the launch was postponed to its new date of October 2024.
The H20, the third chip designed specifically with China as its majority user (after L20 and L2), is said to be the most powerful chip Nvidia has generated. This strength will need to continue as Nvidia navigates its contract termination with Baidu (HKG: 9888). In 2023, the search engine company dropped Nvidia from its contract, instead opting to source AI chips from Huawei Technologies, which is owned wholly by its employees.
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Nvidia manufactured two different chips targeting Chinese customers two years ago, namely the A800 and H800 chips. These were set to be alternatives that aligned with various US and Chinese exportation laws, although the faced restrictions as the US began further tightening of its laws in early 2023.
Since January 2023, Nvidia’s shares have increased by 245% and the tech company currently tops the “Magnificent Seven” stock leaderboard with a 10-year return of 12,480%.
