Despite facing embargoes, Nvidia has devised a strategy to undercut Chinese designers who are advancing in artificial intelligence accelerators, though its effectiveness remains uncertain.

While Nvidia dominates the global chip market, challenges persist in China, where local firms are turning these embargoes into opportunities, similar to how Apple has offered discounts in the region.

Recently, Nvidia introduced the H20 artificial intelligence accelerator in China to adhere to embargo regulations but did not achieve the anticipated reception.

Facing rising competition from local manufacturers, Nvidia opted to slash its prices by approximately 10%, aiming to compete more effectively against rivals like Huawei's Ascend 910B. However, experts suggest that overcoming Chinese nationalism in the market is a daunting task for Nvidia. Despite these challenges, the impact on Nvidia’s financials from the Chinese market remains minimal.

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