CN Clients Reportedly Get Only ~1% Supply of USD70B RTX Chip Orders Amid NVIDIA Capacity Crunch
Chinese AI developers are expected to receive only a small portion of the advanced NVIDIA (NVDA.US) chips they have ordered over the coming months, Bloomberg, citing sources, reported.
BABA-W (09988.HK), TENCENT (00700.HK), ByteDance and other Chinese AI and cloud companies have collectively ordered about 6 million Nvidia RTX Pro 5500 chips, but these companies are assumed to receive only tens of thousands of units over the next four months, or about 1%.
Although the US has prohibited Nvidia from selling its most advanced chips to China, the RTX Pro 5500 is not subject to restrictions. Sources said that the total value of orders so far is about USD70 billion based on a unit price of more than USD11,000 per chip.
Major Chinese AI developers forecast the first batch of several thousand RTX Pro 5500 chips to be delivered before the end of 2026, followed by another batch of tens of thousands around February 2027.
As Nvidia is predicted to expand production capacity, Chinese hyperscale cloud computing providers estimate they may receive about 700,000 RTX Pro 5500 chips by the end of 2027, sources divulged. However, Nvidia warned customers that capacity will remain limited for the foreseeable future due to product scheduling conflicts.
The company allocated more manufacturing capacity to next-generation products such as Rubin, and supply of the RTX Pro 5500 is expected to remain constrained.
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AASTOCKS Financial News
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