NVIDIA’s AI GPUs made specifically for China are flying off the shelves as tech giants like Tencent and ByteDance rush to lock in their orders. 
This surge comes after NVIDIA confirmed it has started accepting orders for its H20 chips, designed to meet U.S. export restrictions while still offering strong AI capabilities.
CEO Jensen Huang’s trip to Beijing signaled more than a diplomatic visit-it marked a calculated move to restore NVIDIA’s foothold in the Chinese AI market after months of uncertainty. With the Biden administration still holding the key to export licenses, NVIDIA remains cautiously optimistic. The company has indicated confidence that licenses will be granted, though approval is not guaranteed.
Demand is so strong that Reuters reports Chinese firms are scrambling to submit purchase applications, trying to beat any potential tightening of U.S. rules. This race isn’t just about chips-it’s about strategic tech dominance. Ironically, while China’s public narrative often touts independence from Western tech, the stampede for NVIDIA hardware reveals how critical the American firm remains to the Chinese AI boom.
Huang has warned that locking out China might backfire. According to him, sanctions may simply accelerate development of domestic competitors like Huawei, ultimately undercutting America’s influence in global AI innovation. Still, U.S. policymakers worry that these powerful GPUs could be used for military or surveillance purposes, making every export decision a political flashpoint.
Adding further complexity, Malaysia has announced new regulations requiring a 30-day heads-up before firms export advanced chips, another signal of how geopolitics is tightening around semiconductor supply chains.
In the meantime, NVIDIA’s stock saw a healthy jump as markets reacted to the company’s confidence and revived sales pipeline. While some critics question NVIDIA’s dual messaging-asserting China doesn’t need U.S. chips while selling them at scale-the business case is simple: China remains a massive, hungry market, and NVIDIA intends to feed it while it still can.