Editor’s note: The article has been updated with Nvidia’s response.
Nvidia Corp. (NASDAQ:NVDA) is reportedly in the process of creating a new AI chip, designed to comply with U.S. export controls, specifically for the Chinese market.
This development follows Washington’s decision to tighten its controls on semiconductor exports to China in 2023. Since then, Nvidia has created three chips specifically for the Chinese market. The new chip could enhance Nvidia’s efforts to combat competition from Chinese tech giant Huawei and Tencent-backed startup Enflame.
China contributed to roughly 17% of Nvidia’s revenue in the year ending January, a decrease from 26% two years prior, due to U.S. sanctions. Despite a slow start, Nvidia’s most advanced chip for China, the H20, is anticipated to sell over 1 million units this year, generating over $12 billion, as per research group SemiAnalysis.
It is widely expected that the U.S. will continue to apply pressure on semiconductor-related export controls, with initial plans to impose restrictions around the most advanced AI Models.
Nvidia declined to comment on this.
In July, Nvidia was on track to sell $12 billion of artificial intelligence chips in China this year despite the U.S. export controls.
Back in May, the Chinese government had urged its tech giants to reduce their reliance on foreign-made chips, particularly those from Nvidia, and increase their purchase of domestic AI chips.
Price Action: As per Benzinga Pro, Nvidia closed at $117.93 on Friday.
Read Next:
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.