Artificial intelligence kingpin Nvidia Corp (NASDAQ: NVDA) stock has been a tad jittery amid reports of losing out on Chinese LLM developers over performance issues by its specialized AI chip meant for China.
Reports claimed Nvidia is testing the HGX H20 chip with Chinese server suppliers, but it likely has only about 20% of the computing power of Nvidia’s H100.
Meanwhile, Nvidia’s CEO Jensen Huang pledged on Monday to strive to accomplish Japan’s high demand for the company’s AI processors. Japan is seeking to revitalize its semiconductor sector and advance in AI technology, where Nvidia’s GPUs hold a dominant market position.
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Huang committed this during his visit to Prime Minister Fumio Kishida in Tokyo, following Japan’s recent allocation of approximately 2 trillion yen ($13.60 billion) for chip investments in its supplementary budget, Reuters reports. This funding will likely aid Taiwanese chipmaker Taiwan Semiconductor Manufacturing Company (NYSE:TSM) and the new chip foundry venture Rapidus in Hokkaido, Japan.
Huang remarked that Japan’s growing semiconductor industry could produce GPUs and emphasized the importance for countries like Japan to develop their data, AI factories, and AI intelligence.
Nvidia stock has gained 227% year-to-date, backed by the AI frenzy.
Price Action: NVDA shares traded lower by 1.10% at $462.50 on the last check Monday.
