1. Nvidia will introduce a new AI chipset for China at lower prices. 2. New GPU priced between $6,500 and $8,000, less than H20's price. 3. China accounts for 13% of Nvidia's sales; market share dropped to 50%. 4. U.S. export restrictions triggered a $5.5 billion inventory write-off. 5. Huang warned of potential shifts to Huawei's chips if restrictions persist.
The new chip targeting China at lower prices may recover market share despite U.S. restrictions. Historically, introducing products tailored to specifications has helped mitigate losses in similar situations.
The shift in product strategy for China indicates significant adaptability, which may stabilize future earnings against constraints. Its implications on sales and market share are critical for NVDA's trajectory.
As Nvidia introduces new products, recovery in market share could take time. Similar past scenarios showed delayed impacts from strategic announcements and product launches.