Nvidia Corp (NASDAQ:NVDA), known for its graphics processing units (GPUs), is witnessing a surge in demand from various Chinese companies, both tech and non-tech, as they develop their artificial intelligence (AI) products amidst growing tensions between Washington and Beijing.
L&A Design, a landscape designer listed in Shenzhen, recently announced its purchase of up to 128 Nvidia server units containing high-performance GPUs for 435 million yuan.
This move by L&A Design, which resulted in a 20% increase in its stock price, reflects a broader trend among Chinese companies emphasizing their access to Nvidia chips, SCMP reports.
The escalating U.S. sanctions have led Nvidia to develop slower variants of its chips specifically for Chinese clients.
However, recent restrictions in October made it illegal for Nvidia to sell these tailored chips, the A800 and H800, in China. Despite these challenges, Chinese firms are keen to utilize Nvidia’s technology, which is crucial for powering large language models (LLMs).
Big tech companies like Tencent Holdings Ltd (OTC:TCEHY), Baidu Inc (NASDAQ:BIDU), Alibaba Group Holding (NYSE:BABA), and ByteDance have been significant customers of Nvidia.
The new sanctions have prompted Nvidia to introduce three new data center GPUs – the H20, L20, and L2 – though the U.S. has warned against any potential workarounds to the restrictions.
These developments indicate the crucial role of Nvidia’s GPUs in AI advancements and the impact of U.S. sanctions on China’s ambition to become a leading AI nation.
Meanwhile, at the upcoming CES trade show in Las Vegas, Nvidia looks to unveil its latest developments in artificial intelligence, including generative AI, along with a range of other innovative technologies.
The unique address, scheduled for January 8, will focus on consumer technologies and robotics.
Various sectors will feature announcements and demonstrations of AI, gaming, and Nvidia Studio technologies.
This includes partnerships with consumer electronics giants like Acer, ASUS, Dell, GIGABYTE, HP, Lenovo, MSI, Razer, Samsung, Zotac, and more.
In the automotive sector, Nvidia will showcase collaborations with industry leaders such as Mercedes-Benz, Hyundai, Kia, Polestar, Luminar, and Zoox.
In robotics, Nvidia works alongside companies like Dreame Innovation Technology, DriveU, Ecotron, and others.
The enterprise segment will see Nvidia collaborating with Accenture, Adobe, Altair, Ansys, AWS, Capgemini, Dassault Systems, Deloitte, Google, Meta, Microsoft, Siemens, and Wipro.
Price Action: NVDA shares traded lower by 0.47% at $493.72 on the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons
