Nvidia's Growth Catalysts: Sovereign AI, Blackwell Chips, and Chinese Sales

Nvidia's growth has been hindered by concerns about competition, tariffs, and trade restrictions with China. However, several catalysts could drive growth in the second half of 2025, including the momentum of sovereign AI, sales of next-generation Blackwell chips, and increased sales to China. These factors could boost Nvidia's stock, making it a potentially strong investment in the second half of the year.

Nvidia (NASDAQ: NVDA) has faced significant challenges in the first half of 2025, including concerns about competition, tariffs, and trade restrictions with China. However, several catalysts could drive the company's growth in the second half of the year, making Nvidia a potentially strong investment.

Firstly, sovereign AI is gaining momentum. Nvidia's CEO, Jensen Huang, has advocated for countries to develop their own AI infrastructure. The European Union and several countries, including Germany, France, Saudi Arabia, South Korea, and the United Arab Emirates, have jumped on board. As the leading provider of AI-centric chips, Nvidia stands to benefit significantly from this trend [1].

Secondly, Nvidia's next-generation Blackwell chips, which include the GB200, B100, and B200 versions, are now shipping. These chips are expected to have a substantial impact on Nvidia's financial results over the coming year. Leading data center and cloud computing operators have pledged to spend $315 billion in capital expenditures this year, with the vast majority allocated to AI. As the leading provider of data center GPUs, Nvidia is well-positioned to benefit from this spending [1].

Lastly, Nvidia has resumed sales of its AI chips to China. The company has applied for licenses to sell its H200 chips in China, with assurances from the Trump administration that they will be granted. Estimates suggest that these sales could be nearly $10 billion per quarter, providing a significant boost to Nvidia's revenue [2].

In conclusion, Nvidia's growth could be significantly bolstered by the momentum of sovereign AI, sales of next-generation Blackwell chips, and increased sales to China in the second half of 2025.

References:
[1] https://finance.yahoo.com/news/could-nvidia-best-investment-second-070200517.html
[2] https://www.ainvest.com/news/approves-nvidia-resumption-ai-chip-sales-china-rare-earths-talks-2507/