NVIDIA (NVDA, Financial) plans to resume H20 GPU shipments to China, which is expected to positively impact China's data centers, public cloud, and AI supply chain, notably benefiting major semiconductor firms like Montage Technology. NVIDIA's CEO confirmed efforts to secure U.S. government approval for these shipments during his recent visit to Beijing. Additionally, a new compliant RTX PRO GPU tailored for smart factories and logistics was announced.
According to Bank of America, if granted, this move could accelerate customer occupancy and increase orders in Chinese data centers. Major tenants such as service providers and large internet companies could quickly receive more GPUs, potentially enhancing data center capacity utilization for firms like GDS Holdings (GDS) and 21Vianet Group (VNET). The new GPU offerings may also reduce supply uncertainty, supporting a resurgence in data center orders from Chinese cloud providers starting in 2025.
In the public cloud sector, the availability of NVIDIA GPUs will boost AI computing capabilities, likely driving higher revenues from AI-related services. Montage Technology (688008.SH) is expected to see increased domestic shipments of its PCIe Retimer, enhancing revenue growth due to its role in AI servers.
