The US is reportedly considering new trade sanctions on China to restrict its access to advanced AI chip technology. This may result in a ban on NVIDIA's HGX-H20 AI GPUs for the Chinese market.

Despite the HGX-H20's downgraded performance, it still outperforms Huawei's Ascend 920 series AI chips in practical applications.

If the US decides to ban the HGX-H20 in the semiconductor export policy review in October, NVIDIA could face various restrictions. These may include specific product bans, reduced computational power of the chips, or limited memory capacity. This would significantly impact Chinese AI companies relying on NVIDIA's CUDA platform, as migrating to other platforms is costly and time-consuming.

In response to the potential US ban, NVIDIA has partnered with China's Inspur Group (SHA: 600756) to develop the new B20 AI chip. However, if new sanctions are implemented, the launch of the B20 could also face uncertainties. Reports indicate that Chinese companies can still obtain NVIDIA GPUs through intermediaries or cloud services, prompting the US to strengthen restrictions.