Nvidia (NVDA) Readies Groq AI Chips for China Launch in May

FomoAnxiety · 2026-03-18T05:34:14+00:00

Nvidia plans to sell Groq's AI chips in China, available as early as May, integrating with other systems. CEO Jensen Huang forecasts significant growth in AI chip demand, projecting $1 trillion in revenue by 2027, despite competition from Chinese firms.

FomoAnxiety

2026-03-18 05:34:14

Abstract generation in progress

Semiconductor giant Nvidia NVDA -0.70% ▼ is preparing versions of Groq’s AI chips for sale in China, according to sources cited by Reuters. These chips are not downgraded versions or made specifically for the Chinese market; they can integrate with other systems. The chips are slated for availability as early as May. This development follows China’s approval of Nvidia’s export-compliant H200 AI chips for import.

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Nvidia licensed inference accelerator technology from AI chip startup Groq last year in a $17 billion deal. At its ongoing annual developer conference in San Jose, California, Nvidia unveiled a new lineup of products built around these Groq chips.

Huang Says Inference ‘Inflection’ Has Arrived

In his Monday keynote, Nvidia CEO Jensen Huang declared that “the inference inflection has arrived.” He added that demand for AI chips “just keeps rising,” and projected that Nvidia’s AI chips could generate at least $1 trillion in revenue by 2027.

Have high conviction in NVDA? Leverage your view

Nvidia plans to leverage Groq’s chips for AI inference, the process where trained models generate responses, write code, or perform user-requested tasks in real time. At GTC 2026, the company announced plans to pair them with its next-generation Rubin processors, which face U.S. export restrictions barring sales to China.

Nvidia holds a dominant position in the market for training large AI models, where vast datasets teach systems patterns and knowledge. Yet, it encounters far stiffer competition in inference. Major Chinese companies, including AI leaders like Baidu BIDU -0.91% ▼ 9888 +0.17% ▲ , already manufacture their own inference chips.

Is NVDA Stock a Strong Buy?

Yes, analysts remain highly optimistic about Nvidia’s long-term prospects. On TipRanks, NVDA commands a Strong Buy consensus rating based on 35 Buys and one Hold rating. The average Nvidia price target of $275.61 implies 51.5% upside potential from current levels. Over the past year, NVDA shares have surged 57.6%.

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