Nvidia's Jensen Huang praises DeepSeek and Chinese AI at Beijing expo.

Nvidia CEO Jensen Huang praised Chinese AI contributions, including DeepSeek, during a visit to Beijing. He lauded the quality of Chinese AI research and models, calling them "world-class." Huang also mentioned the upcoming export licenses for the H20 AI chip, which could add billions to Nvidia's revenue this year.

Nvidia CEO Jensen Huang recently praised China's contributions to artificial intelligence (AI) during a visit to Beijing. He highlighted the efforts of Chinese AI startup DeepSeek and commended the quality of Chinese AI research and models, describing them as "world-class" [1]. Huang also announced that Nvidia will resume sales of its H20 AI chips to China, which could add billions to the company's revenue this year.

Huang's comments came during a speech at an expo in Beijing, where he emphasized China's rapid innovation in AI. He noted that AI is transforming various industries, including scientific research, healthcare, energy, transportation, and logistics. The expo is part of Beijing's efforts to position itself as a champion of free trade, in contrast to rising trade tensions and tariffs under former U.S. President Donald Trump [1].

The announcement of H20 chip sales to China was met with a strong market response. Nvidia's stock surged 4.47% in pre-market trading, reaching a new record high. This greenlight from the U.S. government could recover billions in lost revenue for Nvidia, which had taken a $4.5 billion hit when restrictions were enforced in April [2]. The news also boosted the broader tech market, with the Nasdaq reaching new heights and Hong Kong tech stocks rallying.

Nvidia's new RTX Pro chip, designed to meet U.S. export rules, further boosts its China strategy. Chinese tech giants like ByteDance and Tencent are rushing to order, with the company already receiving orders from these firms. The chipmaker is currently filing applications to sell the H20 GPU again, and shipments could begin in the coming weeks [2].

The broader AI chip ecosystem is reacting positively to Nvidia's export approval. AMD stock climbed 3.18% in pre-market trading, while other beneficiaries include TSMC and Super Micro Computer. The export license news is boosting investor sentiment across the tech and semiconductor sectors [2].

In the short term, Nvidia's stock has the potential to cross $200, especially if H20 and RTX Pro sales scale in China and global AI demand continues rising. Over the next 6 to 12 months, Nvidia's stock has the potential to grow 20–30% year-over-year, assuming China remains a viable market [2].

Investors should keep an eye on license timelines, shipment caps, demand surges, and geopolitical risks. Any delay in license approvals or new tensions between the U.S. and China could put future shipments at risk [2].

References:

[1] https://timesofindia.indiatimes.com/business/international-business/catalyst-for-global-progress-nvidia-ceo-praises-chinas-ai-efforts-highlights-deepseeks-role/articleshow/122552369.cms

[2] https://economictimes.indiatimes.com/news/international/us/nvidia-stock-surges-4-47-in-pre-market-as-u-s-clears-h20-ai-chip-sales-to-chinaamd-up-3-18-too-as-ai-trade-door-reopens/articleshow/122496972.cms?from=mdr