Nvidia recently announced that it plans to sell 1.5 million to 2 million GPU chips this year, which will increase by 3 times compared to the shipment volume for the whole year of 2023. The news came as a surprise, especially as Nvidia was widely seen as losing market share in China. However, this is not a big gamble on NVIDIA, but due to the long production cycle of GPU chips, orders have been filled long ago. The executives of TSMC and Nvidia recently met to discuss Nvidia's concerns about insufficient production capacity. It can be inferred that Nvidia's AI chip orders may already have a serious capacity shortage. As a result, Nvidia's AI chip shipments are likely to grow rapidly this year. For those who think Nvidia will take a major blow in the Chinese market and lose its leadership, I am afraid to be disappointed. At least judging from the current situation, Nvidia's "throne" is still solid, because they have a lot of orders to support it.
In addition, in order to further expand chip orders, Nvidia will launch the next-generation hopperh200 and blackwellb100 as soon as possible. With the leading technology in the GPU field, NVIDIA actively reduces the loss of the Chinese market, and at the same time improves its own technical strength to protect its market position. Analysts have said that Nvidia's position is difficult to surpass, because while other manufacturers are still catching up, they have already launched more advanced products. As a result, despite losing some market share, Nvidia is still at the top of the industry. However, in my opinion, even in the face of this situation, it is impossible for Nvidia to give up continuing to ship to the Chinese market. There are two reasons for this, one is that Nvidia is well aware that it will not be able to become a global company without the Chinese market. At the same time, China's market share is being compressed, and if it is only replaced by domestic chips, the situation is acceptable, but facing strong competitors such as AMD and Intel is even more worrying. On the other hand, the Chinese market has a huge demand for chips, and for Nvidia, this not only means revenue growth, but also a key factor to maintain competitiveness. This also explains that under the chip restrictions, Nvidia can still launch a special version of the chip for Chinese manufacturers. However, if Nvidia wants to occupy the Chinese market, it may not work by downgrading chips alone, and there is still some uncertainty about Nvidia's next strategy.
Nvidia's position in the Chinese market remains solid, despite facing competition from domestic chips and declining market share. However, Nvidia did not passively wait for market share to be taken away, but actively took steps to remain competitive. They plan to increase the production and shipment of GPU chips to meet the demand of the Chinese market. At the same time, Nvidia is also preparing to launch a new generation of Hopperh200 and BlackWellB100 to continue to stay ahead of competitors and stabilize its position in the market.
For NVIDIA, the importance of the Chinese market to its global business cannot be overstated. The loss of the Chinese market will make it impossible for Nvidia to realize its globalization strategy and risk being replaced by competitors. In addition, the huge demand for chips in the Chinese market not only brings more revenue opportunities for NVIDIA, but also is a key factor in maintaining competitiveness. Therefore, Nvidia is unlikely to give up the opportunity to ship to the Chinese market. However, in the face of the rise of domestic chips and the strong layout of competitors such as AMD and Intel, Nvidia needs to develop more effective strategies to meet the challenges.
In short, despite the cold in the Chinese market, Nvidia still maintains a huge market share and leading position. By increasing chip shipments and launching next-generation technologies, Nvidia is expected to further strengthen its position in the Chinese market. However, Nvidia still faces a series of challenges, including competition for domestic chips, the layout of competitors, and changes in the demand in the Chinese market. As a result, NVIDIA needs to continue to innovate and be competitive to ensure its leadership in the Chinese market.
In view of NVIDIA's current market position, I think they still have certain advantages and competitiveness in the Chinese market. In the past few years, the gradual rise of domestic chips has brought some pressure to NVIDIA, but NVIDIA has not been squeezed out of the market, but has responded to competition by improving its own technical strength and increasing production capacity. Especially in the field of AI chips, Nvidia is still the market leader. While the market share in China may be affected, the global business remains very strong. NVIDIA has strong R&D strength and technological advantages, and they are able to adjust their strategies in a timely manner to respond to changes in the market, and we believe that they will continue to maintain their leading position in the future. At the same time, the development potential of the Chinese market is huge, and NVIDIA will not give up this opportunity easily, and will continue to increase its investment and layout in the Chinese market.