China Approves DeepSeek's Purchase of Nvidia Chips
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- DeepSeek Approval: China has approved AI startup DeepSeek to purchase Nvidia's H200 AI chips, although final regulatory conditions are still being finalized, which will enhance DeepSeek's technological capabilities and market competitiveness in the AI sector.
- Bulk Purchase Clearance: ByteDance, Alibaba, and Tencent have been cleared to purchase over 400,000 H200 chips in total, reflecting strong demand for high-performance AI chips in the Chinese market and indicating a gradual easing of regulatory policies.
- Strong Market Demand: Nvidia CEO Jensen Huang noted that while no orders for H200 chips have yet been received from Chinese customers, he believes the product is very suitable for the Chinese market, with strong customer eagerness to buy, highlighting significant market potential.
- Generational Technology Gap: The H200 chip belongs to Nvidia's Hopper generation, trailing the current Blackwell line and the upcoming Rubin platform, yet its application prospects in the Chinese market remain promising, potentially driving technological advancements for related companies.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 191.520
Low
200.00
Averages
264.97
High
352.00
Current: 191.520
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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SK Hynix Surpasses Samsung in Operating Profit for the First Time
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