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Bullish news is coming! NVIDIA (NVDA.US) H20 shipments may resume, and these AI supply chain companies will benefit.
The Global Research Department of Bank of America believes that in the second half of the year, NVIDIA (NVDA.US) may restore shipments to China H20, which will have a positive impact on China's data centers, the public cloud Industry, and major semiconductor companies in the artificial intelligence supply chain, such as Montage Technology (688008.SH).
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According to Morgan Stanley, the resumption of supply from H20 will alleviate the procurement bottleneck issues experienced by cloud service providers, with GDS Holdings (GDS.US) being the top choice.
Morgan Stanley published a research report indicating that NVIDIA (NVDA.US) has officially submitted an application to sell H20 GPUs in China, and it is expected to receive a license from U.S. authorities. This is significant bullish news for China's data center industry, believed to help alleviate the procurement bottleneck faced by China's large-scale cloud service providers for data center equipment. The report pointed out that the GPU shortage is the primary reason for the lack of domestic data center orders in the second quarter of this year, as well as the significant decline in the stock prices of IDC companies since March. Currently, the industry's recovery progress is still relatively lagging, and it is anticipated that, supported by this bullish news, cloud service providers will soon initiate a new round of operations.
Goldman Sachs: The U.S. permits NVIDIA (NVDA.US) AI chip exports to China, alleviating the shortage of chips in China.
A Goldman Sachs report stated that NVIDIA (NVDA.US) announced yesterday (15th) that the U.S. government will grant it a license to export custom H20 AI GPUs to the Chinese market, and the company hopes to begin deliveries soon. Additionally, NVIDIA plans to launch a new China-compliant RTX Pro GPU. The bank expects the market to react positively to this news, as NVIDIA's resumption of AI GPU exports to China could alleviate the chip shortage in the country, which has affected the capital expenditures of Chinese cloud service platforms and the order visibility of Chinese data center operators. The bank also noted that the news is significant for the Chinese cloud services and data center sectors.