Nvidia Poised to Earn $12 Billion from GPU Sales to China in 2024 Despite U.S. Trade Restrictions

Nvidia Poised to Earn $12 Billion from GPU Sales to China in 2024 Despite U.S. Trade Restrictions

Despite U.S. trade restrictions, Nvidia is projected to earn $12 billion from GPU sales to China in 2024. Research firm SemiAnalysis predicts that the GPU maker will ship over 1 million units of its new H20 model to the Chinese market, each priced between $12,000 and $13,000, reports The Register.

SemiAnalysis suggests that this figure nearly doubles what Huawei is expected to sell of its Ascend 910B accelerator, as noted by The Financial Times. This contradicts earlier reports indicating Nvidia had reduced its product prices for China, as buyers were leaning towards domestically made equipment for accelerating AI workloads. The H20 GPU is the highest-performing model among three Nvidia GPUs designed for the Chinese market to comply with the Biden administration's performance restrictions introduced last year.

Huawei's Ascend 910B, on the other hand, is said to rival Nvidia's A100 GPU in performance. It is believed to be an in-house design manufactured by Chinese chipmaker SMIC using 7nm process technology, unlike the older Ascend 910 product. If the forecast holds true, it will be a relief for Nvidia, which previously revealed that its China sales contributed a "mid-single digit percentage" of revenue for Q4 of FY2024, with a similar forecast for Q1 of FY2025. This is a significant drop compared to the 20-25 percent revenue contribution from China in recent years before the export restrictions.