@ivanaspearJul 15, 2025 · 3:45 PM

China is about to open up a $50 billion opportunity for AI chip companies for the next 1-2 years...and over $500 billion long term 😯 AI chips and the Data Center value chain are setting up for a blowout 2H. There are three main drivers: 1️⃣ Inference demand is about to explode 🎇 2️⃣ Blackwell systems are reaching full production (GB 200/300) 🛠️ 3️⃣ ...and now China is opening up 🐲 For background, @NVDA generated >$17B from China last year and guided to this number going to ZERO. The news today about Nvidia and AMD being able to secure export licenses for the H20 is a major reversal ... As Jensen Huang put it, "If the US won't participate in China, Huawei has China covered," which would hardly be in the US's best interest. This announcement is significant not just because H20s are now allowed, but it could also mean more sensible regulation going forward where tech companies have a voice at the table. BONUS: Watch China margins in the near term for both $NVDA and $AMD. Both companies already wrote off $4.5B and $0.8B in inventory, respectively. Seems like they can sell these chips after all. 🤔 The news is positive for Nvidia and AMD, the companies that got hit hardest by the restrictions, but also for the rest of the Data Center value chain.