Title: Nvidia’s Hopper Product H20 Showing Strong Demand in China Market, Analyst Predicts Over $10 Billion in Revenue
Nvidia has recently revamped its Hopper product specifically for the China market, with Morgan Stanley’s Joseph Moore predicting a surge in demand for the H20 offering.
According to Moore, recent checks in Asia suggest that H20 builds have increased to around 1.2 million units for the year, selling at an average price of $13,000 to $15,000. While it’s uncertain if all units will be sold, conversations with China hyperscalers indicate strong demand for the H20, leading Moore to estimate over $10 billion in revenue over the next three quarters.
However, there are some concerns to consider. Moore notes that the gross margins for H20 are lower, potentially leading to margin compression. Despite this, he believes that worries about this issue are exaggerated.
Analyst Jordan Klein from Mizuho also raised questions about whether the momentum of H20 will have a negative impact on the business and margin mix.
In conclusion, the revamped Hopper product H20 by Nvidia is gaining traction in the China market, with strong demand expected to drive over $10 billion in revenue. While there are some concerns about lower gross margins, analysts remain optimistic about the potential success of the H20 offering. Investors should keep an eye on Nvidia’s performance in the coming quarters to see how the H20 product impacts its overall financial performance.