The Rival based in Nvidia China has 4,300% income income, because the income from flea manufacturers have declared any sale of H20 flea markets

Revenues, published Tuesday evening, serve as an example of the growing local competition from Nvidia in China, because the government and the market are looking for alternative flea manufacturers to gain ground in the region. Nvidia’s activities in China were linked to American export restrictions and geopolitical tensions, and the technological giant did not record any H20 flea selling in China in the second quarter, according to its profits yesterday.

Cambricon’s revenues in the first half increased to 2.88 billion Chinese Yuan ($ 402.7 million), the company reported this week. The Chinese upstart, created by two “Genius Brothers”, partially belongs to the State and whose siege is in Beijing. The actions of the company are now the most expensive and most expensive, Kweichow Moutai alcohol company. However, income growth is far from Nvidia, which said $ 46.7 billion in the second quarter.

But the experts say Fortune Cambcony’s growth reflects a more important thrust to create local Nvidia competitors in China, in particular the technology giant, the technology giant deals with increased export restrictions as part of the Trump administration.

“Nvidia apparently has a better global offer in terms of equipment in China, but due to export checks, at the moment, they cannot sell, fundamentally, to China,” said Ray Wang, director of semiconductor research, the supply chain and emerging technology to Futurum Group, said Fortune. “They leave a big void on the market for a Chinese competitor to be made.”

Wang said that large technological companies in China like Huawei and Smic “quickly catch up” Nvidia in terms of product and quality, as well as production capacity.

“It is a serious concern for Nvidia and the American government’s agenda in terms of … dominating AI worldwide,” he said.

Export tensions with China

Earlier this year, the United States applied stricter export controls to China, at some point, prohibiting H20 fleas – which are known to be less powerful than NVIDIA – AI fleas from the country. In July, the ban was lifted, but it also allowed companies to invest in innovation.

“The problem of the prohibition (H20 Chips) is that you effectively return the AI ​​market and training to companies like Huawei or Cambcon or … other local players,” said Stacy Rasgon, main analyst of American semiconductors and semiconductor equipment in Bernstein Research, said Fortune.

Rasgon stressed that, in the case of Cambcon, the increase in income of approximately 44 times to 402.7 million dollars in the first half of this year means that the company has gone from “tiny to small”. He said he was less concentrated on the percentage of growth than reason behind.

“There is a big push in China for self -sufficiency,” said Rasgon.

Cambricon’s record benefit was helped by a wave of Chinese chip demand after Beijing encouraged the use of local technology, citing security problems and uncertainty about the export limits of the Trump administration. The most recent catalyst for Cambcon’s overvoltage came from the AI ​​Deepseek startup, which said that last week, its latest model is delivered with a feature that can optimize locally manufactured chips.

Last week, the Chinese government told its technological companies to stop using Nvidia’s H20 fleas after trade secretary Howard Lunick said that China would not receive the “fourth best” fuck of the company when speaking with CNBCAdding only fuel to fire.

“You want to sell the Chinese enough for him to add to the American technological battery,” added Libnick.

Despite the technological progress of the rivals of Nvidia in the midst of geopolitical tensions, the demand for H20 fleas remains, even in the face of the regulatory obstacles that the company navigates.

In his second quarter income, NVIDIA did not declare any H20 sale to customers based in China. On Wednesday, in her call for results, the financial director Colette Kress estimated that $ 2 billion at H20 in income this quarter if “geopolitical problems reside”. NVIDIA has not included any turnover of H20 chips in its third quarter guidelines, which exceeds analysts’ expectations from $ 53.14 billion to $ 54 billion, more or less 2%.

“It was inevitable that there would be more participants on this market,” said Sébastien Naji, research analyst at William Blair, Fortune. “In the short term, I think that risks on the regulatory front have more impact than increased competition.”

Nvidia had previously warned that without the export restrictions of American fleas, its topline guidelines for the July quarter would have been more dollars.

“I think the action does not have this price, in terms of if these income should disappear,” said Scott Bickley, advisory member of the Info-Tech research group, said Fortune Before the NVIDIA results on Wednesday calls on Wednesday.

CFO Kress has also said that during the call for profits in recent weeks, a “selected number” of customers based in China had received licenses for H20 fleas, although none has been shipped according to these licenses. Kress has also mentioned that the US government and Nvidia have not finalized a recent agreement that will force the flea manufacturer to share 15% of the income he makes thanks to H20 flea sales at China.

How China’s chips accumulate with Nvidia

There are already Chinese products that surpass Nvidia’s H20, said analyst Rasgon. He said he expects greater competition on the local market to catalyze flea in China.

“Nvidia will never be allowed, probably for sale better parts in China,” said Rasgon. “So for the Chinese, it takes time, but they will work to improve their own business. And over time, maybe this gap ends.”

The CEO of Nvidia, Jensen Huang, has long complained of American export controls, saying that they would only galvanize local players to innovate in the absence of the Tamias manufacturer.

“The Chinese market, I estimated about 50 billion dollars in opportunities for us this year if we were able to remedy it with competitive products,” said Huang when calling the second quarter.

But not only does Nvidia seek to resume sales of H20 fleas in China, but the company also wishes to extend its product range by introducing the high performance Blackwell chip in the country, if the United States agreed.

“We continue to plead for the US government to approve Blackwell for China,” Kress said when calling the results. The company aims to “win the support of each developer” in highly competitive markets, she added, so Nvidia technology can be the global standard.

“You somehow need a blackwell chip (in China), even if it will be of a performance in nature, compared to the rest of the market,” said Angelo Zino, SVP and analyst of technological actions at CFRA, said Fortune.

While Zino said the H20 “will probably not give you enough to compensate or recover income”, the company has had a few quarters, by introducing a Blackwell chip in China.