American chip giant Nvidia (NVDA) CEO Jensen Huang hailed China’s artificial intelligence (AI) chips as “world-class” at the opening ceremony of the China International Supply Chain Expo in Beijing today. He praised the large language models (LLMs) developed by Chinese tech firms such as DeepSeek, Tencent (TCEHY), and Alibaba (BABA) as drivers of innovation in the country.
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Huang’s remarks come as Nvidia prepares to resume sales of its export-compliant H20 AI chips to China, following the lifting of the export ban by the Trump Administration. After this announcement, NVDA stock soared to a new 52-week high of $172.40 on July 15. Meanwhile, Nvidia is also developing a new export-compliant chip for China by modifying its existing Blackwell RTX Pro 6000 processor.
Huang Is Excited to Serve the Chinese AI Market
Yesterday, Huang expressed excitement that Nvidia could start serving China’s AI market, which is valued at $50 billion. He also added that the U.S. government has ensured that it will provide the required export licenses for the chips. These tailor-made H20 chips are less powerful than those available in the U.S., in order to limit their potential misuse for enhancing China’s military capabilities.
The CEO also stated that China’s open-source AI model is a “catalyst for global progress… giving every country and industry a chance to join the AI revolution.” At the same time, Huang stressed the vital role of Nvidia’s chips in enabling innovation among Chinese tech firms. He noted that more than 1.5 million developers in China rely on Nvidia platforms to bring their ideas to life.
During an interview on July 13, Huang stated that China’s military is unlikely to rely on American AI chips, as the export ban could be reinstated at any time. He assured that the White House “does not need to worry” about Nvidia’s technology being used to enhance Chinese military capabilities. Reports suggest that Huang’s recent meeting with Trump, and his reassurances, prompted the administration to consider lifting the chip export ban.
Is NVDA Stock a Good Buy?
On TipRanks, NVDA stock commands a Strong Buy consensus rating based on 36 Buys, four Holds, and one Sell rating. Also, the average Nvidia price target of $177.57 implies 4% upside potential from current levels. Year-to-date, NVDA stock has surged 27.1%.
