After announcing the shipment of 2 million chips, Chinese companies are facing restrictions, and Nvidia's throne is in jeopardy?
Nvidia's chips are not selling well in China, causing many people to be suspicious. One of these factors is Nvidia's competitors, so that they have enough time to catch up with Nvidia's technology in chips and its market share. On the one hand, it is because they believe that domestic chips can compete with NVIDIA.
So, there are good and bad.
However, just when many thought Nvidia was going to be a laughing stock, Nvidia made a stunning announcement. Nvidia intends to **1.5 million to 2 million graphics processors this year. And this figure is three times that of FY2023. Nvidia's business is not so easy to do. The reason for this is that GPUs take longer to deliver, and many are not ad hoc orders. Some people speculate that Nvidia has a large order in its hands, which is why it will do this.
Just a few days ago, TSMC held a meeting with Nvidia, and Nvidia said that their production capacity is not strong enough and needs TSMC's help. If this is the case, NVIDIA's orders for AI chips will be greatly affected. This also indicates that Nvidia's shipment figures in AI chips may grow.
They believe that Nvidia will definitely lose a lot in the Chinese market, but now it seems that Nvidia's"Throne", still have to sit tight. After all, NVIDIA has just too many orders.
It's not just about wanting to get more chip orders. Building on NVIDIA's leadership in graphics, they also announced the next-generation H200 and BlackWellB100 as a compromise on NVIDIA's superior performance. In other words, NVIDIA is now working on a two-pronged approach, actively mitigating losses in the Chinese market on the one hand, and improving its technological capabilities on the other hand to maintain its position in the market.
Some analysts believe that because Nvidia is ahead of the competition and other manufacturers are still playing catch-up, it will be difficult to take its place. So, despite the decline in Nvidia's market share, it is still the leader in the industry.
Still, I think it's unlikely that Nvidia will abandon orders in the Chinese market. On the one hand, Nvidia is very aware that once the Chinese market is lost, it will not be able to grow into a global company; At the same time, NVIDIA's market share in China is also shrinking, and the most important point is that its competitors AMD and Intel are inseparable from the Chinese market. They are more reluctant to compete with companies like AMD than to seize the Chinese chip market.
From another point of view, China's chip demand is huge, which is not only a boost in revenue for Nvidia, but also a key to maintaining its competitive advantage. Perhaps, it is precisely because of this that Nvidia can let Chinese manufacturers offer two different products on their own chips. However, in order to occupy the Chinese market, Nvidia should not reduce its price, which makes people curious about what Nvidia will do next.
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