Nvidia may need “months” to ramp up output of China-focused chips – Wolfe Research

Nvidia (NASDAQ:NVDA) is expected to take “several months” to scale up production of its new artificial intelligence chip designed to meet increasing demand in China, according to analysts at Wolfe Research.

The analysts’ note on Friday revealed that recent checks indicate the development of Nvidia’s H20 chip “has been underway for some time,” and a limited release is anticipated “within a month.”

This news comes after reports earlier in the week suggested that Nvidia is planning to unveil its H20, L20, and L2 chips, designed specifically for China and in compliance with new U.S. export regulations, on or after November 16.

“We’re […] confident that China-compliant products will launch shortly, removing an overhang on the stock that resulted from the most recent restrictions,” stated the Wolfe analysts.

This situation marks the second time in just over a year that Nvidia has had to adjust its products for the Chinese market due to U.S. regulatory changes. In October, the U.S. Department of Commerce implemented stricter controls on the computing power in AI chips sold to China, impacting Nvidia and other semiconductor manufacturers.