Semiconductor giant Nvidia (NVDA) CEO Jensen Huang is planning to visit Beijing next week, ahead of the launch of a new artificial intelligence (AI) chip designed specifically for China. Nvidia has modified its existing Blackwell RTX Pro 6000 processor to comply with President Trump’s tightened chip export rules. The news was first reported by the Financial Times, citing sources familiar with the matter.
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Nvidia’s modified AI chip will not include advanced features such as high-bandwidth memory (HBM) and NVLink interconnects, which enable faster data transfers. The new AI chip is expected to launch in September, pending clearance from the White House.
Nvidia Reaffirms its Commitment to China
Huang will be in China to attend the International Supply Chain Expo in Beijing, which starts next Wednesday. He is expected to meet top Chinese officials, including Premier Li Qiang and Vice-Premier He Lifeng, to reaffirm Nvidia’s commitment to China. China contributed about 13% of total Nvidia sales in fiscal 2025, and is the company’s fourth-largest market.
The Trump administration has become increasingly cautious about China’s dominance in the AI race and the potential misuse of advanced technology for military operations. As a result, the administration also placed a ban on the export of Nvidia’s H20 chips to China, even though they were modified with lower capabilities.
Chinese Companies Begin Testing New Chips
The report noted that Chinese companies have started testing samples of the modified AI chips while Nvidia awaits approval from the White House. Nvidia’s clients have reportedly shown interest in ordering a large number of these chips. Despite the chip’s limitations, Chinese companies are willing to buy the NVDA chip to avoid the large operating expenses associated with shifting away from Nvidia’s CUDA platform to another one.
At the same time, China’s major tech firms have also grown wary of the continued U.S. export restrictions. Companies such as ByteDance, Alibaba (BABA), and Tencent (TCEHY) are testing competing domestic chips for their AI models. Meanwhile, Nvidia also faces the risk of building up excess inventory should the U.S. impose a sudden ban on the chip after its launch. Nvidia already took a $5.5 billion hit to its bottom line from the abrupt ban on the export of H20 chips to China, because it had to write-down large inventories of those chips.
Is NVDA a Good Stock to Buy Now?
Notably, Nvidia became the first publicly-listed company to reach a $4 trillion market capitalization on July 9. Despite initial headwinds, NVDA stock has rallied recently due to the burgeoning demand for AI chips and easing trade relations between the U.S. and China.
On TipRanks, NVDA stock has a Strong Buy consensus rating based on 35 Buys, four Holds, and one Sell rating. The average Nvidia price target of $175.97 implies 8% upside potential from current levels. Year-to-date, NVDA stock has gained 21.3%.
