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In a note to clients on Friday, the Wolfe analysts said that recent checks indicate that the development of Nvidia’s H20 chip “has been underway for some time,” adding that a limited release of the product is expected “within a month.”
The comments follow reports earlier this week that California-based Nvidia is planning to announce its H20, L20 and L2 on Nov. 16 at the earliest. The three chips will be tailored specifically for China and in compliance with new U.S. export regulations announced last month, the reports said.
“We’re […] confident that China-compliant products will launch shortly, removing an overhang on the stock that resulted from the most recent restrictions,” the Wolfe analysts said.
It would be the second time in just over a year that Nvidia has been forced by U.S. officials to restructure its products for Chinese customers, as the AI-darling looks to expand its presence in the country.
In October, the U.S. Department of Commerce unveiled more stringent controls over how much computing power can be built into cutting-edge AI chips sold to China.
The move was seen at the time as a possible blow to both Nvidia, whose graphics processing units have dominated the AI market, and its fellow semiconductor manufacturers. In particular, Nvidia said Washington’s tighter rules would block it from selling two AI chips — the A800 and H800 — that were previously modified to follow prior export laws.
