Nvidia (NVDA) Denies That It’s Preparing to Re-enter China’s Market with a New B40 Chip

Nvidia (NVDA) became the center of some confusion this week after reports suggested that it was preparing to return to China’s AI data center market with a new B40 chip. Shenzhen-based ZJK Industrial (ZJK) initially announced it was increasing production to support Nvidia’s B40 project, an AI accelerator built on Nvidia’s Blackwell architecture and designed for Chinese customers. ZJK claimed mass production would begin this month, with over one million units expected to ship by the end of 2025. However, later on Thursday, ZJK retracted its press release and told GlobeNewswire that readers should disregard the announcement.

Indeed, Nvidia has clearly stated that it is not yet re-entering China’s market. The company explained that it is still working on potential designs and must get U.S. government approval before moving forward. “Until we settle on a new product design and receive approval, we are effectively foreclosed from China’s $50 billion data center market,” Nvidia said. This comes after Nvidia had to cancel its Hopper series chips in China due to U.S. export restrictions, which resulted in a $5.5 billion inventory write-off and $15 billion in lost sales.

Nvidia CEO Jensen Huang recently said that the company is exploring ways to serve Chinese customers again, but no new product has been approved yet. For now, Nvidia’s ability to re-enter the market depends on meeting U.S. rules and getting the required approvals. Nvidia stock, which dipped on Thursday after the initial reports, bounced back on Friday after ZJK retracted its statement, which shows just how sensitive investors are to any news about Nvidia’s plans for China.

What Is a Good Price for NVDA?

Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 35 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $172.36 per share implies 21.5% upside potential.

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