Nvidia China Clients to Get 1% of $70 Billion RTX Chips Ordered

Nvidia (NVDA) surpassed Apple (AAPL) as the world's most valuable company, with a market cap of $4.99T vs. Apple's $4.84T. Apple's margins are pressured by rising memory costs, while Nvidia benefits from AI-driven demand. Nvidia reports earnings on Nov 17.

Nvidia has received orders for 6 million RTX Pro 5500 chips from Chinese firms like Alibaba, Tencent, and ByteDance, totaling around $70B. However, these companies expect to receive only about 1% of the ordered chips in the next four months due to production constraints, according to a Bloomberg report.

Chinese AI firms including Alibaba, Tencent, and ByteDance ordered 6M Nvidia RTX Pro 5500 chips, but expect to receive only 1% in the next 4 months due to supply constraints, according to Bloomberg sources.

Samsung Electronics will build a 2.7 million-square-foot semiconductor plant in Texas to produce base dies for AMD and Nvidia, according to industry sources. The plant, set for 2030 production, will use 2-nanometre technology. AMD holds the majority of orders. Samsung declined to comment. The facility is 1.5 times larger than its first Texas plant, which supplies Tesla.

Nvidia will supply only 1% of 6M AI chip orders from Chinese firms, totaling $70B. U.S. export controls and capacity constraints limit supply. Nvidia prioritizes high-margin chips for non-Chinese customers. Chinese firms face shortages and rely on domestic alternatives, with Nvidia's China market share dropping to 34%.

Chinese tech firms, including Alibaba, Tencent, and ByteDance, have ordered $70B worth of Nvidia RTX Pro 5500 GPUs but expect only 1% delivery in four months. Nvidia struggles to meet demand, with production limited. The RTX Pro 5500 is a workstation card not subject to US export controls, making it a key AI chip for Chinese buyers. Nvidia may produce up to 3M units globally in 2027, according to reports.