Nvidia Produces China-Specific Cheap Chip GB300 and NVL72

Nvidia Pushes Production Limits With GB200 Demand

Clark Tang of Altimeter Capital pointed to the acceleration of production in Taiwan, with heavy demand for Nvidia's GB200 and upcoming GB300 systems. Tang's observations from the field highlight the escalation in interest in advanced AI equipment and the transformation this demand has created in manufacturing processes.

🚀 Demand Explosion on GB200 and GB300 Systems

• The interest in Nvidia's high-end GB200 chips is forcing production to ramp up at an extraordinary pace.
• Clark Tang described the production activities he observed during his week with manufacturers in Taiwan as “unprecedented”.
• Demands from AI labs and CSPs are increasing, especially in parallel with advances in reasoning models.
• Statements from giants such as Microsoft, Amazon AWS and OpenAI support this intense interest.
• Despite the complexity of new hardware, solution and integration capabilities at the engineering level are developing rapidly.

🧩 Technical Challenges of NVL72 Systems

• The synchronous operation of each Blackwell GPU with 71 other GPUs simultaneously makes manufacturing much more complicated.
• The new systems require much more engineering precision than previous HGX boxes with 8 GPUs.
• Taiwanese engineers successfully manage the process, despite initial pessimism.
• The reduction of cycle times for GB200 is considered an improvement that will increase the speed of shipment.
• Automation of production processes stands out as an important element that increases efficiency.

🔄 Paradigm Shift in Testing Processes

• Now the testing and commissioning processes are managed by ODMs rather than directly by customers.
• This approach turns GB200s into “plug and play” devices.
• Hon Hai (Foxconn) and Wistron are leading the way in this transformation.
• The new systems provide faster deployment and a lower error rate.
• CSPs' reliance on ODMs makes Nvidia's strategy more flexible.

📈 Price-Driven New Strategy for China Market

• Nvidia has developed a lower-priced chip to increase its competitiveness in the Chinese market.
• The new graphics processing unit will be priced in the range of $6,500—$8,000.
• Developed with Blackwell architecture, this product will be less advanced compared to the H20 model.
• The use of traditional GDDR7 memory balances performance while reducing cost.
• This strategy, which offers maneuverability under U.S. export restrictions, is seen as an effort to hold on to the market.

🎯 Competition and Market Share War in China

• Nvidia's market share in China dropped from 95% to 50%.
• The H20 ban cost the company $5.5 billion in inventory loss.
• Huawei's Ascend 910B chip poses a serious threat to Nvidia.
• But CUDA integration gives NVIDIA software-based advantages.
• According to experts, China's domestic technologies will approach low-performance chips in 1—2 years.

🧠 Expert Review

In the short term, Nvidia may capture strong shipment figures with the increase in GB200 production; however, the risk of margin pressure remains due to manufacturing complexity. In the medium term, a product strategy specific to the Chinese market can create a competitive advantage, but regulations and the momentum of domestic competitors must be monitored. In the long run, integration and software advantages in AI hardware could make Nvidia a player that maintains its global leadership.

✅ Take Action

Nvidia's strategic steps in both western markets and China make the stock a strong investment opportunity again. There is a critical threshold for investors who want not to miss developments and orient their portfolio correctly.
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🛑 Disclaimer

This content is created by Investment Desk AI and does not constitute investment advice. You should make your decisions based on your own research and expert advisors.

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