Nvidia Orders 300,000 H20 Chips Amid Surge in Demand

Nvidia has placed a new order for 300,000 H20 chips with TSMC, marking a significant shift in its strategy. This move comes in response to the strong demand for H20 chips, which has prompted the company to supplement its existing inventory of 600,000 to 700,000 chips. Previously, Nvidia had indicated that it would rely solely on its current stock, but the surge in demand has led to a change in plans.

This decision underscores Nvidia's optimism about the future of the GPU market and its long-term business growth. The company had previously stated that it would not restart production of custom AI chips until demand was sufficiently high. However, the recent increase in demand has led Nvidia to change its stance and place a new order with TSMC. This move is expected to help Nvidia meet the growing demand for its products and maintain its competitive edge in the market.

The strong demand for H20 chips has been a driving factor in Nvidia's decision to place the new order. The company has also requested that potential customers submit new documents, including order quantity forecasts, indicating that it is preparing for large-scale production. This move is expected to help Nvidia strengthen its presence in the market and tap into the growing demand for advanced technology products.

Despite the new order, Nvidia still needs to obtain export licenses from the U.S. government before it can ship the chips. The company had previously stated that it had received assurances from U.S. authorities that it would soon obtain the necessary licenses. However, it remains to be seen when these licenses will be granted and when the new chips will be available for shipment.

In summary, Nvidia's decision to place a new order for 300,000 H20 chips with TSMC is a clear indication of the company's confidence in the future of the technology industry and its ability to meet the growing demand for advanced technology products. This move is expected to help Nvidia maintain its competitive edge in the market and strengthen its presence in the region. However, the company still faces challenges in obtaining the necessary export licenses and ensuring timely delivery of the new chips.