Nvidia CEO Jensen Huang's Beijing Visit Sparks AI Industry Anticipation

Nvidia sparks buzz ahead of July 16 -- will CEO Jensen Huang unveil the next big AI move?

Nvidia's big China comeback: H20 AI chip sales approved, stock jumps as CEO Jensen Huang teases major AI reveal on July 16- The story around Nvidia is heating up fast as we head into July 16. With the spotlight on CEO Jensen Huang, the tech world is waiting to see what's coming next in the AI race. Nvidia has already made headlines this week by scoring U.S. approval to resume sales of its H20 AI chips to China, and now there's growing talk that Huang might use his Beijing appearance to reveal a major move in AI. This event isn't just another industry update. It could shape how Nvidia plays in both the global AI chip market and China's booming tech sector. So what exactly is going on? Let's break it down. The key reason behind the rising excitement is Nvidia's decision to hold a media briefing in Beijing on July 16, as confirmed by a company spokesperson. This will be Huang's second visit to China in 2024, signaling how serious Nvidia is about reconnecting with a region that once brought in around $17 billion in annual revenue. Now that Nvidia is cleared to ship its advanced H20 chips to Chinese companies again, industry watchers believe Huang could use this opportunity to unveil a new AI strategy or even launch new chip models designed specifically for China, where U.S. tech restrictions have made things tricky in recent months. There's speculation that Nvidia may unveil a new China-approved chip, possibly a version of the Blackwell RTX Pro 6000, tailored to meet U.S. export restrictions and support Chinese AI demand. Huang's visit is being watched closely in Washington. Two U.S. senators have warned him not to work with blacklisted Chinese companies, keeping Nvidia in a tight spot between U.S. rules and China sales. Despite pressure, Nvidia is betting big on its CUDA platform and local demand, as Chinese companies are lining up to buy the newly cleared H20 chips -- especially before new U.S. restrictions hit again. Until recently, Nvidia's business in China was under pressure due to U.S. government restrictions on exporting its high-end chips like the A100 and H100, which are widely used for training powerful AI models. To stay in the game, Nvidia developed new chips including the H20, L20, and L2, which are built to meet the U.S. export rules while still giving Chinese companies access to strong computing power. Now that the H20 chip has received U.S. approval, Nvidia is set to resume shipments. That's a huge win, considering the company reportedly lost about $4.5 billion in sales because of the previous restrictions. Major Chinese tech players like ByteDance, Alibaba, and Tencent are already lining up to buy. Nvidia's stock surged in response to the news. On July 15, pre-market trading showed a 4.5% jump, with shares hitting around $171.40. This also helped lift the Nasdaq-100 index by 0.6%, showing how much influence Nvidia holds over the broader tech market. Investors are clearly optimistic. The approval to restart chip exports, combined with the anticipation of a big announcement from Huang, has created strong momentum for the stock. Opinions are mixed -- but the bull case is loud and clear. Many analysts believe Nvidia is still in the early innings of a long AI boom: While the company hasn't confirmed any specific product launches, industry experts think Huang might announce: Given the sensitive environment around U.S.-China tech policies, any new announcement will likely be designed to show Nvidia's ability to adapt without crossing any red lines. With the stock already testing highs again, investors are watching closely for what comes out of Beijing. If Huang delivers a bold vision, or if new product details come out, Nvidia could break above $180 in the short term, with some models pointing toward $205-$210 in the next few months. However, there are still risks. If global regulations tighten or if competitors like Huawei continue to gain ground in China, Nvidia could face new headwinds. Q1: Why is Nvidia's July 16 event important for AI? It may reveal new AI chips or plans for China's market. Q2: Has Nvidia resumed H20 chip sales to China? Yes, U.S. cleared shipments and sales are restarting.

Will Nvidia Announce Something Big on July 16? | The Motley Fool

Nvidia (NVDA -0.46%) has made headlines over the past few years as it's reinforced its position as an artificial intelligence (AI) chip leader. The company has spoken of "insane" demand for its latest architecture and chip, has delivered record levels of revenue and high profitability, and has shown that it can be part of every stage of AI growth. All of this has helped the shares to skyrocket, advancing more than 980% over the past three years. But Nvidia has encountered one major hurdle along this path, and that's operating in the Chinese market. A few years ago, the U.S. launched export controls, preventing Nvidia and others from shipping their top-performing chips to that country. Nvidia responded by designing a chip that met U.S. guidelines, but this spring the U.S. informed the company that it could no longer export that chip without a license -- the U.S. hasn't yet granted such a license to chip companies. That move officially closed the door to the Chinese market, prompting Nvidia to say it no longer would include China in its earnings guidance. Since, CEO Jensen Huang has spoken openly about how export controls will be negative for U.S. chip designers as well as the AI industry in the U.S. Now, Huang has something planned for July 16 that Nvidia investors should watch. First, though, a quick summary of Nvidia's path so far and its position in China. As mentioned, Nvidia is the world's AI chip leader, selling its graphics processing units (GPUs) to everyone from start-ups to tech giants. The company also offers a wide range of AI products and services, and this whole package has helped generate double- and triple-digit revenue growth -- Nvidia reported a staggering level of revenue in the latest full year at $130 billion. Nvidia generates most of its revenue in the U.S., but China also is an important market. In the recent fiscal year, that country represented 13% of the company's total sales. This is as Nvidia sold its H20 chip, specifically designed to meet U.S. export guidelines for the Chinese market. But, as mentioned, Nvidia received a letter from the government this spring saying it could no longer continue shipping H20s as usual. This resulted in Nvidia taking a $4.5 billion charge in the quarter for H20s that it could no longer sell, and even worse, it locked this chip giant out of the China market. Huang made a trip to China in April and hasn't given up on an eventual return to the market. "We are exploring limited ways to compete," Huang said during Nvidia's recent earnings call. Now, let's consider what's happening on July 16. Huang plans to hold a press conference in Beijing, Reuters reported, citing an Nvidia official. The wire service also reported that two senators sent Huang a letter asking him not to meet with companies working with Chinese military or intelligence as well as companies on the U.S. export restriction list. Should investors expect a big announcement from Huang during the media briefing? The Chinese export situation is complex, but Huang has shown himself to be resourceful in the past. One example is Nvidia's rapid development of the H20 to suit earlier guidelines. Another example of resourcefulness happened after President Donald Trump announced his import tariff plan this spring. Nvidia then said it would invest in U.S. manufacturing facilities to produce the first AI supercomputers in the U.S. Of course, it's impossible to predict what Huang will say on July 16 with 100% accuracy, but I wouldn't be surprised if this resourceful CEO announces some progress on Nvidia's quest to return to the Chinese market. And if he does, this clearly could be big news for Nvidia -- and the stock could soar. What does all of this mean for investors over the long term? The ability to sell chips once again to China would offer Nvidia a revenue boost, and that's positive. But it's important to keep in mind that even if Nvidia doesn't announce something big this week and it remains excluded from the Chinese market, this company still generates extremely strong growth -- and is well positioned to continue along that path with or without China. That's why, whether Nvidia is able to return to that market or not, this AI stock remains a fantastic one to hold on to over time.