by a Significant Margin to Maintain Profit Margins Amid the ‘Revenue Share’ Deal With the Trump Administration

NVIDIA is planning to raise the prices of its H20 AI chips by up to 18% to maintain its gross margins, which were reportedly affected by President Trump’s deal.

NVIDIA’s H20 AI Chip Could See Up to An 18% Price Hike, To Maintain Profit Margins

Team Green’s China business is evolving pretty quickly with each day, as the company is not only seeing uncertainty from the ‘claimed’ presence of security backdoors in the company’s H20 AI GPUs, but NVIDIA also needs to satisfy the Trump administration to ensure a smooth business. Based on comments by Gene Munster, co-founder of Deepwater Asset Management (via MoneyDJ), it is claimed that NVIDIA is planning to bump up the price of the only chip being sold to China, as the firm looks to maintain its profitability figures and ensure that it satisfies all parties involved.

Munster has revealed that NVIDIA plans to transfer the cost of the deal with President Trump to its Chinese customers, hence his anticipation of an 18% rise in H20 pricing. More importantly, when you factor in that Team Green has to pay 15% of China revenue to the Trump administration, the H20 price hike will certainly drive down gross profit margins, but profits are expected to remain consistent throughout the company’s business in the region.

The company’s H20 AI chip is also facing another barrier, which comes from the regulatory investigation opened up by China to investigate whether the firm’s chips flowing into the nation have potential security backdoors. While NVIDIA has denied the claim entirely, reports have suggested that trackers are being placed in AI server shipments being sent to China, which shows a potential risk to the future of Team Green’s business with Beijing.

We have contacted NVIDIA to comment on the H20 price rumors, but for now, it seems like driving up the price is the only way the firm could maintain its profitability, which is the key factor for the company’s shareholder value.

https://wccftech.com/nvidia-is-reportedly-raising-the-price-of-its-h20-ai-chip-by-a-significant-margin/amp/