Latest news with #H800
Yahoo
16-07-2025
- Business
- Yahoo
Nvidia Stock Investors Just Got Great News From the Trump Administration
In April, the Trump administration blocked Nvidia from selling H20 GPUs in China, a decision that has already cost the company billions of dollars in revenue. Nvidia recently filed applications to resume selling H20 GPUs in China and has reportedly received assurances from the U.S. government that licenses will be granted. Wall Street analysts are likely to raise their earnings forecasts for Nvidia, and upward revisions to earnings forecasts tend to drive share-price appreciation. 10 stocks we like better than Nvidia › Nvidia (NASDAQ: NVDA) has been a cornerstone of the artificial intelligence (AI) boom. The stock has advanced 1,070% since January 2023 as the company has reported tremendous financial results, driven by strong demand for its graphics processing units (GPUs) and other data center infrastructure. Nevertheless, export restrictions imposed by the U.S. government have cost the company billions of dollars in sales. Fortunately, Nvidia shareholders recently got great news from the Trump administration: Applications to resume selling its H20 GPUs in China will be approved by the Commerce Department. Here's what investors should know. China has historically been a major market for Nvidia. It accounted for 26% of revenue in the fiscal year that ended in January 2022. But export restrictions dragged that figure down to 22% in fiscal 2023, 17% in fiscal 2024, and 13% in fiscal 2025. Meanwhile, CEO Jensen Huang estimates Nvidia's market share in artificial intelligence (AI) chips in China has fallen from 95% to about 50%. The timeline below briefly explains how U.S. policy has evolved over time. September 2022: The Biden administration told Nvidia to stop exporting A100 GPUs and more powerful H100 GPUs to China. The company estimated it would lose about $400 million in quarterly revenue. Nvidia responded by creating a compliant version of its Hopper GPU called the H800. October 2023: The Biden administration told Nvidia to stop exporting H800 GPUs to China. The company was forced to cancel billions of dollars in orders. Nvidia again responded by creating an export-compliant version of its Hopper GPU called the H20. April 2025: The Trump administration told Nvidia to stop exporting H20 GPUs to China. The company took a $4.5 billion charge due to inventory that could not be repurposed and estimated it would lose $8 billion in revenue in the second quarter. On the first-quarter earnings call, Nvidia CFO Colette Kress said, "Losing access to the China AI accelerator market, which we believe will grow to nearly $50 billion, would have a material adverse impact on our business going forward and benefit our foreign competitors worldwide." CEO Jensen Huang has called the export restrictions a failure. He said in May: The question is not whether China will have AI. It already does. The question is whether one of the world's largest AI markets will run on American platforms. Shielding Chinese chipmakers from U.S. competition only strengthens them abroad and weakens America's position. On Monday, July 14, Nvidia said it has filed applications to resume selling H20 GPUs in China and has received assurances from the U.S. government that licenses will be granted. The news came days after CEO Jensen Huang met with President Trump, and the company plans to begin delivering compliant AI accelerator chips to China soon. Additionally, the Trump administration revoked the Biden-era AI Diffusion Rule earlier this year, which would have limited Nvidia's ability to sell its most advanced AI chips in dozens of countries that have historically been U.S. allies, including Saudi Arabia, the United Arab Emirates (UAE), Singapore, and Israel. The Commerce Department said the AI Diffusion Rule, which was announced during the final days of the Biden administration, would have "stifled American innovation and saddled companies with burdensome new regulatory requirements." Additionally, it would have "undermined U.S. diplomatic relations with dozens of countries by downgrading them to second-tier status." Nvidia has already capitalized on the rescission of the AI Diffusion Rule as more countries lean into sovereign AI -- meaning wholly owned data center infrastructure not subject to control by another nation. Earlier this year, the company announced partnerships that will bring its chips and networking equipment to Saudi Arabia and the UAE. Ultimately, the Trump administration's decision to permit the sale of H20 GPUs into China, coupled with its rescission of the AI Diffusion Rule, means Nvidia now has a larger total addressable market. In turn, Wall Street analysts are likely to raise earnings estimates, and upward revisions tend to correlate with share-price appreciation. The Wall Street consensus currently says Nvidia's earnings will grow at 41% annually through the fiscal year ending in January 2027. That makes the current valuation of 54 times earnings look tolerable. However, upward revisions to earnings estimates would make the stock even more attractive. Investors interested in adding shares to their portfolios should consider buying Nvidia stock now. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Trevor Jennewine has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Nvidia Stock Investors Just Got Great News From the Trump Administration was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Express Tribune
15-07-2025
- Business
- Express Tribune
Nvidia to resume China chip sales amid shifting US export policy
Nvidia has confirmed it is filing applications to restart sales of its H20 artificial intelligence chips to China, following months of shifting US export rules. The move, confirmed through a blog post on Nvidia's website, comes after the Trump administration reversed restrictions imposed earlier this year, opening the door for resumed trade. The company expects to secure US government licences soon and begin deliveries shortly after. It has also announced a new chip, the 'RTX Pro,' designed specifically for the Chinese market and said to comply fully with current export regulations. Nvidia describes the chip as optimised for digital manufacturing, including logistics and smart factory systems. Though not its most advanced processor, the H20 is the most powerful chip Nvidia can legally sell to China under existing rules. Built for inference tasks (the operation of trained AI models) the chip is favoured for its superior memory bandwidth and seamless integration with Nvidia's established software ecosystem. The company's stock also skyrocketed, surging to a new record after the announcement was made. BREAKING: Nvidia stock, $NVDA, surges to a record $170/share in overnight trading after announcing H20 chip sales to China will resume. Nvidia also announces a fully compliant GPU for China. This company just keeps on evolving. — The Kobeissi Letter (@KobeissiLetter) July 15, 2025 Chinese technology firms including ByteDance, Alibaba and Tencent had stockpiled the H20 in early 2025 amid fears of impending restrictions, according to GuruFocus. The chip's popularity, coupled with its performance, meant Nvidia stood to lose as much as $16 billion in revenue when the initial ban was enforced in April. The reversal came weeks after Nvidia CEO Jensen Huang attended a $1 million-per-seat fundraising dinner at former President Donald Trump's Mar-a-Lago resort. According to NPR, the White House softened its stance following Huang's commitment to invest heavily in US-based infrastructure. Nvidia subsequently announced a plan to build domestic AI data centres worth up to $500 billion over four years, in partnership with TSMC. Critics in Washington have questioned the consistency of US policy, warning that easing restrictions could erode efforts to limit China's AI capabilities. Concerns have grown following breakthroughs by Chinese startups like DeepSeek, which trained an advanced AI model earlier this year using Nvidia's H800 chips — a product banned since 2023 but still reportedly reaching China through alternative channels. In the blog post, Nvidia spokesperson Hector Marinez said Huang had been engaging with officials in both Washington and Beijing to highlight the benefits of AI for industry and society. The episode illustrates the competing pressures facing US policymakers as they navigate national security concerns and economic interests. With geopolitical tensions continuing to shape the tech landscape, further shifts in policy appear likely.
AllAfrica
25-06-2025
- Business
- AllAfrica
DeepSeek gets Nvidia's high-end GPUs via Singapore: US official
DeepSeek, a Hangzhou-based artificial intelligence firm, has access to large volumes of Nvidia's high-end graphics processing units (GPUs) and supports China's military and intelligence operations, according to a United States official. An unnamed senior State Department official told Reuters in an interview that DeepSeek sought to use Southeast Asian shell companies to obtain high-end Nvidia chips, including H100 chips, which cannot be shipped to China under US rules. The report said the US official's comment showed that DeepSeek's fast-growing AI capabilities were exaggerated, as the company still relied heavily on US technology. The official warned that DeepSeek had provided user information to the Chinese government but had declined to comment on whether the US would implement further export controls or sanctions against DeepSeek. 'DeepSeek has willingly provided and will likely continue to support China's military and intelligence operations,' said the official. 'This effort goes above and beyond open-source access to DeepSeek's AI models.' An Nvidia spokesman told Reuters that the company's review indicates that DeepSeek used 'lawfully acquired' H800 products, not H100. According to the academic papers published by DeepSeek's researchers, the company used 2,048 Nvidia H800 chips to train its DeepSeek-V3 large language model (LLM). DeepSeek-V3 required 2.788 million H800 GPU hours for its complete training, meaning the total training time was about 56.7 days. DeepSeek also claimed that the training cost for its AI model was only US$5.58 million. By comparison, Meta spent US$500 million to train its Llama 3.1. A group of DeepSeek researchers said in a paper on January 22 that DeepSeek-R1's training used the 'distilled data' from Alibaba's Tongyi Qianwen (Qwen) and Llama. The 'distillation' method uses outputs from a larger AI model to train and improve a smaller one. However, US officials, including the incumbent Commerce Secretary Howard Lutnick, said DeepSeek could create its AI models 'dirt cheap' by purchasing many Nvidia chips and stealing data from Meta's open platform. In October 2022, the Biden administration banned the exports of Nvidia's A100 and H100 chips to China. In October 2023, it also banned the exports of the A800 and H800 chips to China. Many commentators have said that these export controls have a loophole that allows Chinese firms to access American high-end chips through third countries. In January this year, Alexandr Wang, chief executive of the US-based Scale AI, told CNBC that DeepSeek has 50,000 units of H100 chips, the most advanced Nvidia chips on the market. Wang did not provide any evidence or more details. 'We believe they have access to around 50,000 Hopper GPUs, which is not the same as 50,000 H100, as some have claimed,' a team of analysts led by Dylan Ratel wrote in a report on January 31. 'We believe DeepSeek has access to around 10,000 H800s and about 10,000 H100s. Furthermore, they have orders for many more H20's.' The team said DeepSeek's total server CapEx is about US$1.6 billion, plus an operational cost of US$944 million. On April 16, the US House Select Committee on the Chinese Communist Party (CCP) opened an investigation into Nvidia's sales across Asia after issuing a report claiming that DeepSeek had illicitly accessed the firm's chips to train its AI models. The latest Reuters report, citing three unnamed sources, said DeepSeek could still procure the H100 chips after the US banned Nvidia from selling them to China. The sources said DeepSeek obtained far below 50,000 units of Nvidia's high-end chips. Last December, The Information reported that Nvidia had asked Super Micro and Dell to audit their Southeast Asian customers to verify that they still possessed the Nvidia-powered servers they had bought. After DeepSeek released its low-cost DeepSeek-R1 model on January 20 this year, the Trump administration reportedly had started probing whether DeepSeek bought Nvidia's advanced chips through Singapore. 'Nvidia has stated that there is no reason to believe that DeepSeek obtained any export-controlled products from Singapore,' Singapore's Ministry of Trade and Industry said in a statement on February 1. 'We expect US companies, like Nvidia, to comply with US export controls and our domestic legislation,' it said. 'Our customs and law enforcement agencies will continue to work closely with their US counterparts.' In February, Singapore charged three men with fraud for allegedly helping ship Nvidia's high-end chips to DeepSeek in China in 2024. The accused include two Singaporeans, Aaron Woon Guo Jie, 41, and Alan Wei Zhaolun, 49. According to the court papers, the duo committed fraud by falsely declaring to US-based companies Super Micro Computer and Dell Technologies that the servers they purchased, possibly containing Nvidia chips under US export controls, would not be sent to unauthorized recipients. But eventually, the accused shipped these servers to Malaysia and potentially elsewhere. The third person charged was Chinese national Li Ming, 51, who claimed in 2023 that the imported items would be used by the Singapore-registered company Luxuriate Your Life Pte Ltd. The three defendants, if convicted, could face penalties of a jail term of up to 20 years or a fine, or both. Media reports said Wei, a naturalized Singaporean, spent more than two decades building his cloud solution businesses in Asia and owns or helps to manage at least 15 firms, including Aperia Cloud Services and A-Speed Infotech Pte. In March this year, Exsim, a Malaysian property and technology firm, said it mutually terminated its contract with Aperia Cloud Services for the Exsim Hyperscale Data Centre in Bukit Jalil and will source equipment from a 'Japanese Fortune 500 company.' On May 13 this year, the Trump administration issued guidance on protecting supply chains against diversion tactics. It said China used advanced US chips as part of its 'military modernization efforts to improve the speed and accuracy of its military decision making, planning, and logistics, as well as of its autonomous military systems, such as those used for cognitive electronic warfare, radar, signals intelligence, and jamming.' It now requires chip makers to follow a set of 'know your customer' (KYC) rules and raise red flags for possible transshipment of US high-end chips to China. The Financial Times reported on June 9 that the Trump administration might ease restrictions on selling chips to China in exchange for the country's key minerals. However, a meeting between US and Chinese officials in London on June 9-10 seemed to have focused on other things, such as allowing Chinese students to study in the US. Read: American AI chipmakers' eyes are on Saudi Arabia now, not China
South China Morning Post
16-05-2025
- Business
- South China Morning Post
DeepSeek paper offers new details on how it used 2,048 Nvidia chips to take on OpenAI
Chinese artificial intelligence (AI) research lab DeepSeek has released a new research paper revealing in detail for the first time how it built one of the world's most powerful open-source AI systems at a fraction of the cost of its competitors. 'Insights into DeepSeek-V3: Scaling Challenges and Reflections on Hardware for AI Architectures', co-authored by DeepSeek founder Liang Wenfeng and released on Wednesday, attributes the start-up's breakthrough in training high-performance, cost-efficient AI systems to a hardware-software co-design approach. 'DeepSeek-V3, trained on 2,048 Nvidia H800 GPUs, demonstrates how hardware-aware model co-design can effectively address these challenges, enabling cost-efficient training and inference at scale,' the researchers wrote. DeepSeek and its hedge fund owner High-Flyer had previously stockpiled the H800, which Nvidia originally designed for the China market to comply with US export restrictions but were banned from export to to the country in 2023. The start-up's training approach stemmed from the team's awareness of hardware constraints and the 'exorbitant costs' of training large language models (LLMs) – the technology behind AI chatbots such as OpenAI's ChatGPT – according to the paper. The paper details technical optimisations that boost memory efficiency, streamline inter-chip communication, and enhance overall AI infrastructure performance – key advancements for reducing operational costs while scaling capabilities. These offer a 'practical blueprint for innovation in next-generation AI systems', the researchers said. Play DeepSeek also highlighted its use of a mixture-of-experts (MoE) model architecture, a machine-learning approach that divides an AI model into separate sub-networks, or experts, each focused on a subset of the input data while working collaboratively.
Epoch Times
15-05-2025
- Business
- Epoch Times
House Lawmakers Introduce Chip Security Act to Address Smuggling of AI Chips to China
Bipartisan House lawmakers on May 15 introduced a bill aimed at preventing the Chinese Communist Party (CCP) from accessing advanced American chips. The United States has put export controls on advanced chips since 2022, intending to cut off the CCP's access to cutting-edge and artificial intelligence (AI) technologies that would advance its military. But they have not had the intended effect Reps. John Moolenaar (R-Mich.) and Raja Krishnamoorthi (D-Ill.), chair and ranking member of the House Select Committee on the CCP, respectively, along with Reps. Rick Crawford (R-Ark.), Bill Foster (D-Ill.), Josh Gottheimer (D-N.J.), Bill Huizenga (R-Mich.), Darin LaHood (R-Ill.), and Ted Lieu (D-Calif.), point to 'mounting evidence' that the CCP has access to restricted technology. The lawmakers say that this access can enable weapons that could be used against the United States in a conflict, advance the Chinese regime's surveillance state, and supplant the U.S. tech industry's dominance in AI and other fields. 'For too long, the Chinese Communist Party has exploited weaknesses in our export control enforcement system—using shell companies and smuggling networks to divert sensitive U.S. technology that helps fuel its military advancement and extend its surveillance capabilities to further its repression,' Moolenaar said in a The Chip Security Act would require location verification for advanced AI chips, enforce mandatory reporting from chipmakers on potential diversion of their products, and task the Department of Commerce with studying additional necessary steps. Related Stories 5/14/2025 5/8/2025 Sen. Tom Cotton (R-Ark.) CCP Workarounds When Chinese AI company DeepSeek launched its free chatbot globally in January, it shook up the tech industry In February, Chinese state media reported that Huawei founder Ren Zhengfei told Chinese regime leader Xi Jinping during a closed-door meeting that China would reach 70 percent semiconductor self-sufficiency by 2028. Ren said that Huawei had made breakthroughs that meant he no longer had concerns about the obstacles U.S. export controls would pose. The House Select Committee on the CCP in April released a The United States has updated its 2022 export controls more than once, limiting more technologies and blacklisting end users, but on an entity-by-entity basis. For example, the Nvidia H800 chip, developed as a watered-down H100 chip for the Chinese market that DeepSeek publicly said it used, got added to the export control list late in 2023. Lawmakers, including Moolenaar, have warned that the CCP and its military already have workarounds to this approach, such as shell company buyers. He cautioned then-Commerce Secretary Gina Raimondo last Companies tend to oppose broad restrictions, according to records of public comments on these rules, because it can put them at risk of not knowing when they have violated these rules.
