Exclusive: China's H3C warns of Nvidia AI chip shortage amid surging demand
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H3C, a major Chinese server maker, warns of potential shortages for Nvidia's H20 AI chips due to supply chain uncertainties. The scarcity comes amid surging demand from Chinese tech giants like Tencent, Alibaba, and ByteDance, with geopolitical tensions and export controls contributing to the supply challenges.
March 27, 2025 | 9:30 am
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Nvidia's H20 chip supply is critically tight in China, with H3C warning of near-depleted inventory. Despite challenges, analysts estimate 1 million H20 units shipped in 2024, generating over $12 billion in revenue.
While supply constraints could potentially impact short-term revenue, Nvidia's strong market position and estimated high shipment volumes suggest a neutral near-term stock impact. Geopolitical tensions create uncertainty but don't fundamentally alter Nvidia's growth trajectory.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 95