The new chip, referred to internally as the B30A, is likely to be more advanced than the H20, the only model authorized for sale in China now.
Nvidia Corp. (NVDA) CEO Jensen Huang has reportedly revealed that the company is involved in discussions with the U.S. government regarding a potential new artificial intelligence chip for the Chinese market.
According to a CNBC report, Huang addressed rumors about a new chip, referred to internally as the B30A, which is likely to be more advanced than the H20, the only model authorized for sale in China now. Huang made it clear that any new chip destined for China would require federal approval. “It’s up to, of course, the United States government,” Huang said, according to the report.
Nvidia stock traded over 1% lower in Friday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory amid ‘normal’ message volume levels.
This follows a Reuters report earlier that said the U.S. chipmaker is working on a more capable AI product amid tightening export restrictions. Nvidia’s challenges in China persist as U.S. regulators have recently demanded that the company surrender 15% of its H20 chip revenue to maintain licensing rights. Also, China is devising plans to ease reliance on U.S. suppliers, aiming for 70% domestic control of AI chips used in data centers by 2027.
All eyes are on Nvidia’s upcoming second-quarter (Q2) earnings, scheduled for August 27. Investors will look for Huang’s comments on the company’s plans and updates on the China business.
On Friday, Evercore ISI raised the price target on Nvidia to $214 from its previous projection of $190, as per TheFly. The firm reaffirmed its ‘Outperform’ rating, citing both near- and long-term growth prospects driven by improved business visibility.
Nvidia stock has gained over 30% year-to-date and over 41% in the last 12 months.
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