Rumor
Nvidia reportedly holds 5.5 billion dollars of restricted H20 inventory being rerouted through Thailand
Tuesday, January 20, 2026 at 12:01 PM
Nvidia is reportedly holding $5.5 billion worth of H20 chips originally intended for the Chinese market but restricted due to export controls. These chips are now allegedly being rerouted through Thailand to meet demand from Chinese enterprises.
Context
Nvidia is reportedly managing a $5.5 billion stockpile of its H20 AI chips, a specialized model originally engineered to meet U.S. export requirements for the Chinese market. Following an indefinite ban on direct shipments to mainland China in early 2025, the company faced significant financial charges related to this unsold inventory. However, recent market data indicates a strategic pivot as Chinese tech giants shift their high-performance computing demand to Southeast Asian hubs, specifically Thailand and Malaysia.
This geographical shift allows Chinese firms to bypass domestic import restrictions by deploying Nvidia hardware in regional data centers. For investors, this movement is a double-edged sword: it provides a critical outlet for NVDA to clear its massive $5.5 billion inventory and sustain revenue from its Asia-Pacific segment. However, the U.S. Department of Commerce is actively monitoring these regional workarounds, suggesting that further regulatory tightening remains a primary risk factor for the company’s supply chain through 2026.
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