NVIDIA's (NVDA) AI Chips in High Demand Despite Export Limits - Jefferies Weighs In

NVIDIA Corporation (NASDAQ:NVDA) is one of the AI Stocks Everyone Is Watching Closely. On July 28, Jefferies noted that Nvidia’s H20 AI chip stockpile (600K–900K units) falls short of China’s demand. This demand, it noted, could reach 1.8M units now that there has been a temporary relief in U.S. export restrictions.

“We believe as long as the U.S. and China are in a ‘truce’ state for trade negotiation, NVDA will be allowed to meet reasonable China demand.”

It further said that “NVDA likely has delivered ~300K in 1Q25,” roughly in line with pre-ban levels.

Regardless of these supply limits, the firm noted that Chinese firms are still after these Nvidia chips owing to their CUDA ecosystem, superior performance, and limited local alternatives.

This strong demand is anticipated to continue even for downgraded future chips like the upcoming B30 (Q4 2025).

The firm further anticipated that there is going to be a next-generation chip, the B30, which will likely be revealed in the fourth quarter of 2025. The B30 will have “reduced memory specs to comply with a likely new criterion for AI chip export control.”

The firm has raised China’s 2025 AI capex forecast by 40% to $108B. It did note that capital spending by China’s internet firms exhibits temporary weakness in the second quarter due to GPU rental supply, but believes that this “does not represent a slowdown in Internet players’ AI efforts.”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, providing high-performance GPUs and platforms that power data centers, autonomous vehicles, robotics, and cloud services.

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