2023 isNvidiaan important year. The popularity of AI large models has boosted itgpuThe demand for chips is the best in the worldgpuMaker,NvidiaNature is filled with joy and confidence. That year,Nvidia's performance has soared by 200%, and its market value has risen by $1 trillion, an increase of 400%. Such results letNvidiaAchieved a sudden rich,Jensen HuangOf course, he is in a good mood and is willing to bring more fun to his employees.
The Chinese market is rightNvidiaIt's special and sensitive. In the previous years, the Chinese market was:NvidiaIt contributes about 20-25% of revenue. In the context of the popularity of AI, the Chinese market is rightNvidiaof orders exceeded $7 billion. However, due to the ban in the United States,NvidiaThe A100 and H100 series chips cannot be used in the Chinese market, and even castrated versions such as the H800 and A800 series cannot be sold. Therefore,NvidiaI had to launch the castrated H20 series chips, but this chip with reduced performance was not recognized by customers, givingNvidiaBrought a lot of itStress
There is a dark horse in the Chinese marketHuaweiAI chips. HuaweiAI chips have sprung up in the Chinese market, and many Chinese companies have chosen themHuaweiAscend AI chip, and some people thinkHuaweiAI chips have been worked withNvidiaThe A100 has quite a bit of strength. In addition,HuaweiThe newly launched Ascend 910b chip is said to have more than 5,000 sets of orders, and a large number of Chinese manufacturers plan to switch to procurementHuaweiof chips, no longer boughtNvidiaproducts. That's rightNvidiaThat's a huge loss if the Chinese customers are leavingNvidiaIt will lose about 20% of its revenue and a large market of $10 billion. Therefore,Jensen HuangIt is necessary to go to China in person to celebrate the New Year with Chinese employees, to calm their emotions, and at the same time to show goodwill to the Chinese market. Jensen HuangWearing a Northeast flower padded jacketVestDancing undoubtedly adds to this kindness.
AlthoughJensen Huangmay please some people, but stabilizing the situation in the Chinese market is not something that can be solved by performance. The key lies in the performance of the product itself. IfNvidiaIt can only provide castrated chips with poor performance, and I am afraid that Chinese customers will no longer recognize itNvidiaBusiness in the Chinese market could fall victim to the U.S. chip ban.
In 2023,Nvidiahas achieved a huge breakthrough in performance, achieving a 200% growth. This is mainly due to the rise of AI large models, which catalyzed the pairgpuThe demand for chips. As the best in the worldgpuMaker,NvidiaThe market value of the company has also risen by $1 trillion, an increase of 400%. This is on a global scaleTechnologyThe industry is no feat.
In the past few years, the Chinese market has been rightNvidiaplays an important role, accounting for about 20-25% of its revenue. Especially in the context of the popularity of AI, the Chinese market is rightNvidiaof orders exceeded $7 billion, yesNvidiaan important point of support. However, the ban in the United States letNvidiaThe inability to use A100 and H100 series chips in the Chinese market has caused huge problems for its business.
HuaweiThe AI chip has emerged in the Chinese market and becomeNvidiaA strong competitor. Many Chinese companies are starting to chooseHuaweiof the Ascend AI chip, and some people thinkHuaweiThe chip is already in place withNvidiaA100 is quite powerful. In addition,HuaweiMore than 5,000 sets of orders have been placed for the newly launched Ascend 910B chipset, and the market response has been strong. A number of Chinese manufacturers are planning to shift to procurementHuaweichips, no longer boughtNvidiaproducts. This is for youNvidiaThis is undoubtedly a huge challenge and threat.
Due to the chip ban in the United States,NvidiaA100 and H100 series chips had to be withdrawn from the Chinese market, and even castrated chips such as H800 and A800 series could not be sold. In the face of changing market demands,NvidiaThe castrated H20 series chips had to be launched, but this product with reduced performance did not win the favor of customers. IfNvidiaIf it cannot provide high-performance chips, it is likely to lose about 20% of the revenue and $10 billion market share in the Chinese market.
NvidiaceoJensen HuangComing to China to express goodwill is based on a number of considerations. First, 2023NvidiaThe performance has increased dramatically, so thatJensen HuangIn a good mood and willing to celebrate with employees; Second, the Chinese market is rightNvidiaIt has an important position for Chinese customersNvidiaThe demand for chips is huge, but the U.S. chip ban andHuaweiThe rise of AI chips givesNvidiaBroughtStressand challenges. Therefore,Jensen HuangThe trip to China was both to appease employees and to show goodwill to the Chinese market. However, this does not meanNvidiaIt can solve the problems of the Chinese market. Importantly,NvidiaIt is necessary to provide high-performance products to meet the needs of the Chinese market in order to achieve sustainable development in the fierce competition. This requires:NvidiaStrengthen technology R&D and innovation with competitorsHuaweiCompete head-to-head to rebuild your competitive position in the Chinese market. That's all there is to itNvidiaIn order to maintain competitiveness in the ever-changing market environment and achieve long-term development goals.