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Nvidia Abandons Hopper Series Chip Release In China Due To US Restrictions: 'Not Possible To Modify Hopper Anymore'

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Nvidia Abandons Hopper Series Chip Release In China Due To US Restrictions: 'Not Possible To Modify Hopper Anymore'

Nvidia Corp. (NASDAQ:NVDA) has decided not to launch a new chip from its Hopper series in China. This decision comes in the wake of U.S. government restrictions on H20 chip sales, as confirmed by Nvidia’s CEO, Jensen Huang.

What Happened: Huang, during a livestream by Taiwan’s Formosa TV News network, stated that modifying the Hopper series further is not feasible, reported Reuters. Earlier this month, Reuters reported that Nvidia intends to launch a downgraded version of the H20 chip in China within two months. This strategy aims to increase sales in a market where Nvidia has lost ground to domestic competitors like Huawei.

 “It’s not Hopper because it’s not possible to modify Hopper anymore,” confirmed Huang.

After the U.S. imposed new restrictions on H20 chip exports to China, Huang visited the country. The H20 chip is the only AI chip that Nvidia can legally sell in China, a market that Huang has often highlighted as crucial to Nvidia’s growth.

The U.S. Framework for Artificial Intelligence Diffusion, released in January, sought to restrict AI chip exports to the majority of countries. Huang has previously criticized these export controls and called for the global expansion of U.S. technology.

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Why It Matters: China accounted for 13% of Nvidia’s total sales in the fiscal year ending January 26, generating $17 billion in revenue for the company. The decision not to launch the Hopper series chip could impact Nvidia’s market share and revenue in China.

Last week, Nvidia and other chip stocks gained after reports indicated plans by the Trump Administration to repeal the Biden administration's artificial intelligence diffusion. This policy created three broad tiers of access for countries seeking AI chips and would have taken effect on May 15.

Meanwhile, Nvidia is planning to expand its research footprint in China with a new Shanghai-based R&D center. This move signals a strategic push to retain AI dominance in the region amid tightening U.S. export restrictions.

Benzinga Edge Stock Rankings shows that NVDA had a strong price trend over the short, medium and long term. Its momentum ranking was strong at the 84th percentile, whereas its value ranking was poor at the 7th percentile; the details of other metrics are available here.

Over the past month, Nvidia stock has surged over 39%.

Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

 

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