Sources: 
Nvidia is set to commence production in June of a new, lower-tier AI chip specifically designed for the China market, Reuters reported Saturday.
This development follows the Trump administration's earlier export ban on Nvidia's advanced H20 AI processor to China, reflecting ongoing U.S. efforts to restrict high-end technology exports amid geopolitical tensions.
"Nvidia will start production of a new, lower-level AI chip for the China market in June," the report stated, highlighting the company's strategic pivot to maintain its presence in the lucrative Chinese market despite regulatory hurdles.
The move comes amid broader U.S. trade policies, including tariffs and export controls, aimed at balancing economic interests and national security concerns. President Trump recently agreed to delay new EU tariffs after discussions with European Commission President Ursula von der Leyen, underscoring the complex trade environment.
"The U.S. currently imposes a 10% baseline tariffs on EU goods, but 25% tariffs on steel, aluminum and autos," illustrating the ongoing trade tensions that impact global supply chains.
Investors are closely watching Nvidia's earnings growth and production capabilities, especially in light of tougher comparisons and the demand for AI technology.
"Nvidia earnings growth is expected to slow amid tougher comparisons. Investors are looking for guidance on AI demand as well as whether Nvidia production snags are in the past," signaling market anticipation for the company's next moves.
Nvidia's June production start of the AI chip for China represents a significant step in navigating export restrictions while sustaining its competitive edge in the global AI semiconductor market.
Sources: Nvidia plans to begin production in June of a new, lower-level AI chip for the China market, following earlier export restrictions on its H20 processor by the Trump administration, Reuters reported. This move comes amid ongoing U.S. trade tensions and evolving tariffs on international goods.
