Nvidia (NVDA) shares rose significantly in early trading on Monday, buoyed by a rebound in chip stocks and news that the company is developing a China-compliant version of its upcoming Blackwell chip.
The new chip, known as the “B20,” is set to ship in the second quarter of 2025 and will be produced in collaboration with Inspur, a major Chinese technology distributor for Nvidia. This development aims to address investor concerns over tightening trade restrictions and geopolitical tensions, which had previously led to a sell-off in chip stocks.
New Chip Addresses Trade Concerns
The B20 is a version of Nvidia’s Blackwell chip adapted to meet U.S. export controls, potentially easing fears about the impact of such regulations on Nvidia’s operations in China. Nvidia has not yet commented on the report, but the move is seen as a strategy to mitigate recent market volatility and restore investor confidence.
High Demand Drives Nvidia’s Stock Performance
The Blackwell platform has generated significant interest, contributing to Nvidia’s stock price surge this year. As of 10:30 a.m. ET Monday, Nvidia shares were up over 4% at $122.76 and have more than doubled in value since the beginning of the year. The strong performance reflects both the high demand for Nvidia’s advanced AI chips and the market’s positive reaction to the company’s efforts to navigate trade and geopolitical challenges.
