Key Points
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NVIDIA’s Market Impact: The recent approval for NVIDIA to sell H20 GPUs in China is projected to add approximately $5 billion in quarterly sales, potentially increasing annual revenue beyond $25 billion as AI demand grows.
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Strategic Shift in Tech Policy: The U.S. may be shifting from a strict tech embargo against China to a more strategic approach, using technology sales as leverage in negotiations over rare earth materials and other trade issues.
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Broader Industry Benefits: Companies like AMD, Broadcom, and Taiwan Semiconductor are expected to benefit from the renewed access to the Chinese market, indicating a ripple effect across the tech industry.
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In a recent AI Investor Podcast discussion (embedded above), 24/7 Wall St Analysts Eric Bleeker and Austin Smith delved into the significant implications of NVIDIA‘s (Nasdaq: NVDA) renewed ability to sell H20 GPUs in China, a move that has sent ripples through the tech industry.
This development marks a potential shift in U.S. tech policy, moving away from a strict embargo towards a more strategic engagement with China. The conversation highlighted how this change could impact NVIDIA’s financial outlook, with estimates suggesting an addition of $5 billion in quarterly sales and a possible annual revenue increase of $25 billion-plus as demand for AI technology continues to rise.
That number could get even higher as well as the H20 is still based on Hopper technology, and NVIDIA will soon be refreshing its export-compliant GPUs to models built on its newer Blackwell platform.
The discussion also touched on the broader ramifications for the tech sector, with companies like AMD and Broadcom poised to benefit from increased access to the Chinese market. Bleeker noted that the H20 GPUs were being used as a bargaining chip in negotiations over rare earth materials, suggesting a calculated approach by U.S. policymakers. As the tech landscape evolves, the podcast underscored the importance of maintaining a balance between competition and collaboration in the global tech arena.
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It’s been an outstanding week for technology stocks, with many leading stocks like Celestica and Cadence Design Systems beating earnings. If you’re looking for a podcast that can keep you up to date on all the biggest developments in AI and give you new inevsting ideas, then you’ll want to check out the AI Investor Podcast.
In our latest episode, we broke down why Meta’s new data center plans could be up to a $300 billion windfall for NVIDIA, the segment above, why rare earth stocks are suddenly soaring, and much more. You can check it outon either Spotify or Apple Podcasts below.
The post NVIDIA (Nasdaq: NVDA) Just Got $25 Billion Worth of Good News appeared first on 24/7 Wall St..
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Author: Eric Bleeker
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