Nvidia Orders 300K H20 Chips from TSMC as China Demand Heats Up
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Nvidia Bets on China Boom
According to sources familiar with the matter, the new TSMC order adds to an existing inventory of 600,000 to 700,000 chips. The strong demand from China has prompted Nvidia to reconsider its initial plan to rely solely on its existing stockpile.
Notably, Nvidia had designed the H20 chip specifically for China after U.S. export restrictions limited access to its more advanced AI chips. While less powerful than the H100 or the latest Blackwell series, the H20 complies with U.S. trade rules.
Earlier this month, the Trump administration reversed an April ban and allowed Nvidia to resume sales of its H20 GPUs to China. However, the company is facing supply constraints due to surging demand and has reportedly informed Chinese customers that its H20 chip supply is limited. Nvidia has also requested that Chinese companies interested in buying H20 chips provide updated documentation, including client order volume forecasts.
Meanwhile, CEO Jensen Huang stated during a recent trip to Beijing that future H20 production depends on order volume, and any restart of the supply chain would take around nine months.
Is Nvidia a Buy or Sell Stock?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 34 Buys, three Holds, and one Sell assigned in the last three months. At $184.91, the Nvidia average stock price target implies a 5% upside potential.
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