【Epoch Times August 22, 2025】The ongoing technological rivalry between the United States and China continues to escalate. Recently, the U.S. has just granted Nvidia permission to sell its H20 chip to China and requested that 15% of the sales revenue be turned over to the U.S. Treasury. However, the Beijing authorities promptly categorized the H20 chip as a “strategic material,” requiring major cloud service providers to halt purchases, throwing the future of this chip into uncertainty once again.
According to tech media outlet The Information on Thursday, sources familiar with the matter revealed that Nvidia instructed suppliers this week to cease all operations related to the H20 chip, including production. The report stated that Nvidia issued such instructions after Beijing requested Chinese companies to refrain from using the H20 chip.
Notified companies include Amkor Technology in Arizona and Samsung Electronics in South Korea. Amkor is responsible for the advanced packaging operations of the H20 chip, while Samsung supplies the chip’s high-bandwidth memory. Both companies did not respond to media requests for comments.
A spokesperson for Nvidia stated, “We will continue to adjust our supply chain to adapt to market changes.”
The statement mentioned, “As recognized by both governments, the H20 is not a military product and is not used for government infrastructure. China will not rely on U.S. chips for government operations, just as the U.S. government will not depend on Chinese chips.”
Last week, Beijing summoned major internet companies such as Tencent and ByteDance to explain why they were purchasing the H20 chip, claiming potential security risks with the chip and pressuring companies to prioritize domestic chip purchases.
Despite the challenges, several Wall Street analysts have raised their expectations for Nvidia’s stock ahead of its quarterly earnings report on August 27.
At least 9 analysts have raised their target price for Nvidia’s stock for the next year, with an average increase of about 3%, reaching nearly $194, setting a new historical high. Based on this target price calculation, the stock still has over a 10% upside potential compared to the closing price on Wednesday, August 21.
Brian Mulberry, portfolio manager at Zacks Investment Management, stated, “What you’re seeing now is the market’s affirmation of Nvidia’s steady growth. Analysts raising their forecasts is just inevitable, this stock won’t slow down.”
Since the surge of generative AI, Nvidia’s position in the data center GPU market has become more solid, with its high-end chips like A100 and H100 being in high demand.
(This article references reports from Reuters, Bloomberg, and The Information)