After Jensen Huang Criticized US Export Curbs, Nvidia Set To Launch Cheaper Blackwell AI Chip For China Amid Market Share Slide: Report

Nvidia Corp. NVDA will launch a significantly cheaper artificial intelligence chip for China’s market, priced between $6,500 and $8,000, as the company adapts to ongoing U.S. export restrictions that have decimated its Chinese market share.

What Happened: The new graphics processing unit, based on Nvidia’s latest Blackwell architecture, represents a dramatic price reduction from the company’s recently banned H20 model, which sold for $10,000 to $12,000. Mass production could begin as early as June, Reuters reported, citing sources.

The lower pricing reflects weaker specifications and simplified manufacturing requirements. The chip will utilize Nvidia’s RTX Pro 6000D server-class processor with conventional GDDR7 memory rather than advanced high bandwidth memory.

Notably, it will not require Taiwan Semiconductor Manufacturing Co. TSM advanced Chip-on-Wafer-on-Substrate packaging technology.

“Until we settle on a new product design and receive approval from the U.S. government, we are effectively foreclosed from China’s $50 billion data center market,” an Nvidia spokesperson stated, according to the report.

Why It Matters: China remains critical for Nvidia, accounting for 13% of sales in the past financial year. However, the company’s Chinese market share has plummeted from 95% before 2022 to 50% currently, CEO Jensen Huang revealed last week. The H20 ban in April forced Nvidia to write off $5.5 billion in inventory and abandon approximately $15 billion in sales.

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Nvidia faces intensifying competition from Huawei Technologies‘ Ascend 910B chip. Semiconductor expert Nori Chiou from White Oak Capital Partners expects domestic Chinese technologies to match downgraded chip performance within one to two years, though Nvidia maintains advantages through its CUDA programming platform integration, the report noted.

Price Action: Nvidia stock closed at $131.29 on Friday, down 1.16% for the day. In after-hours trading, the stock dipped slightly to $131.17, marking a further decline of 0.09%. The stock has declined 5.08% year-to-date but remains 15.27% higher compared to the same time last year.

According to Benzinga Edge Stock Rankings, Nvidia maintains strong price momentum across short-, medium-, and long-term timeframes. While its momentum score remains solid, the stock ranks poorly on value metrics. More detailed metrics are available here.