NVIDIA Corporation (NVDA) to Launch Cheaper Blackwell AI Chip for China, Says Report

NVIDIA Corporation (NASDAQ:NVDA) is set to launch a new AI chipset for China amid U.S. export curbs, Reuters reported on Saturday, with mass production likely to begin as early as next month.

The GPU will be part of NVIDIA Corporation (NASDAQ:NVDA)’s Blackwell-architecture AI processors. It is expected to be priced between $6,500 and $8,000, significantly lower than the recently restricted H20 model.

The lower price reflects the GPU’s weaker specifications, which sources say will be based on RTX Pro 6000D and use GDDR7 memory in place of more advanced memory. They also added that it will not use TSMC’s advanced CoWoS packaging technology.

China is an attractive market for NVIDIA Corporation (NASDAQ:NVDA). The country accounted for nearly 13% of its sales last year. This is the third instance of the company having to tailor a GPU for the Chinese market due to restrictions from American authorities.

After the U.S. banned the H20 chip in April this year, NVIDIA Corporation (NASDAQ:NVDA) considered manufacturing a downgraded version of the chip for China, but the plan did not work out.

Sources also told Reuters that NVIDIA Corporation (NASDAQ:NVDA) was planning to build another Blackwell AI chip for China, with production expected to begin in September. The company’s market share in China has declined since 2022 due to the U.S. export restrictions, resulting in an increasing number of Chinese customers turning toward Huawei's chips.

While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: ChatGPT Stock Advice: Top 12 Stock Recommendations and 10 Cheap Rising Stocks to Buy Right Now.

Disclosure: None.