On Tuesday, Daniel Newman, CEO of Futurum Group, dismissed the idea that China can move on without Nvidia Corporation (NASDAQ:NVDA).
Dan Ives Backs Futurum CEO On Nvidia's China Push
Taking to X, formerly Twitter, Newman said, "$NVDA looks to be advancing efforts to bring the B30, a ‘China Ready' Blackwell to market. The whole ‘China doesn't want/need NVIDIA' is next level nonsense. Don't believe it."
Wedbush analyst Dan Ives quickly chimed in with a fiery emoji reply, signaling agreement that Nvidia's role in China remains critical.
What Is Nvidia's China Strategy
Newman's statement came after it was reported that Nvidia is developing the B30A, a new AI chip tailored for China. Built on the company's advanced Blackwell architecture, the chip will feature a single-die design with about half the computing power of the flagship B300.
It could also offer more performance than the H20 chip, which U.S. regulators currently allow for sale in China. Moreover, it also includes high-bandwidth memory and NVLink connectivity, core features from previous models.
The company aims to ship test samples to Chinese customers by September 2025. China accounted for 13% of Nvidia's fiscal 2024 revenue, making it one of the company's most important markets.
US Restrictions And Trump's Export Deal
Nvidia's expansion comes against a tense political backdrop. In April, the company faced a ban but regained approval in July to sell the H20 model.
President Donald Trump has since indicated his administration will permit scaled-down AI chips in China, provided Nvidia and AMD agree to give back 15% of their Chinese chip revenues to the U.S. government.
Both companies reportedly accepted the deal, sparking criticism from national security experts who warn the chips could still aid China's military.
Chinese Rivals And DeepSeek's Setback
Nvidia also faces rising competition from companies like Huawei Technologies and Cambricon, as Beijing pushes companies to adopt domestic chips. However, China's local hardware continues to lag.
Chinese AI startup DeepSeek reportedly delayed the launch of its R2 model after persistent technical failures with Huawei's Ascend processors. The firm was forced to rely on Nvidia GPUs for training while using Huawei chips only for inference tasks.
Price Action: On Tuesday, Nvidia shares slipped 3.50% during regular trading and edged down another 0.34% in after-hours, settling at $175.04 at the time of writing, according to Benzinga Pro.
Benzinga's Edge Stock Rankings indicate that NVDA maintains a strong upward trajectory across short, medium and long-term horizons. Additional performance details are available here.
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Photo Courtesy: Saulo Ferreira Angelo on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
