Nvidia Unveils Lower‑Priced Blackwell GPU Tailored for China

Nvidia (NASDAQ:NVDA), currently sporting a consensus price target of $675 according to FMP's Price Target Summary API, is set to roll out a new China‑specific Blackwell GPU by June, priced at $6,500-$8,000, undercutting its restricted H20 chip (formerly $10,000-$12,000). The pared‑down processor uses conventional GDDR7 memory and simpler manufacturing—complying with U.S. export controls that bar high‑bandwidth memory exports.

What's Changing in Nvidia's China Strategy

• Simplified Specs: The new GPU omits HBM modules and advanced chip‑on‑wafer‑on‑substrate packaging, trading peak performance for compliance and cost efficiency.

• Aggressive Pricing: At up to 35% below the H20, it targets China's hyperscalers and research labs, preserving market share amid tighter export rules.

Why It Matters for Nvidia and China Customers

• Market Continuity: CEO Jensen Huang has pegged China as a potential $50 billion market over coming years. By offering a locally sellable GPU, Nvidia retains access to leading AI developers.

• Financial Strength: Backed by a AAA corporate rating and over $40 billion in cash, Nvidia's balance sheet gives it the flexibility to absorb near‑term margin pressures from lower chip ASPs.

• Innovation Investment: With roughly 28% of revenue reinvested into R&D, Nvidia can continue advancing future architectures even while offering streamlined variants abroad.

Key Takeaways

• Nvidia's dual‑tier GPU lineup balances export compliance with strategic pricing to safeguard its China footprint.

• Strong credit metrics and robust R&D funding underpin Nvidia's ability to navigate shifting trade policies without pausing innovation.

• Watch for roll‑out timing and early adoption signals from Chinese cloud and research partners to gauge competitive traction.