Nvidia Says Company Firing Up H200 Production for China
Summary
- Nvidia has secured multiple U.S. licenses to sell its H200 AI accelerators to customers in China and is restarting production for this market, representing a significant positive shift after being blocked by export restrictions.
- CEO Jensen Huang clarified that the company's stated $1 trillion sales opportunity for 2025-2027 is based solely on its next two GPU architecture generations, Blackwell and Rubin.
- Huang noted that this $1 trillion figure does not include potential revenue from its CPU or custom chip division (referred to as "Grok"), which he estimated could add up to 25% upside.
- A major theme from the conference was the robustness of AI demand and the parallel need for massive, multi-trillion dollar investments in supply chain capacity to meet it.
- Huang addressed geopolitical concerns, expressing commitment to and worry for employees in Israel, and reaffirming Nvidia's 100% commitment to Taiwan, stating its concentrated supply chain there will not change.
Trade Ideas
CEO Jensen Huang provided a $1 trillion sales opportunity forecast for 2025-2027 based solely on Blackwell and Rubin GPU systems. He separately stated that factoring in the custom chip division ("Grok") could add up to 25% upside to that figure. The base $1 trillion forecast already signals massive expected growth. The explicit quantification of a 25% potential upside from an adjacent, high-margin business (custom chips/CPUs) provides a concrete, incremental growth lever not reflected in the core guidance. This creates a scenario where consensus estimates may be too conservative, as they might not fully price in the contribution from the custom silicon division, representing a positive earnings revision risk. The custom chip market is competitive, and the projected 25% upside may not materialize due to execution challenges or weaker-than-expected demand.
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This Bloomberg Markets video, published March 18, 2026, features Ed Ludlow discussing NVDA. 1 trade idea extracted by AI with direction and confidence scoring.