China's tech giants ordered far more chips than Nvidia can make.
ByteDance, Alibaba and Tencent ordered over 3 million Nvidia workstation cards worth more than $35 billion, Reuters reported. Buyers were reportedly told that Nvidia can deliver only 5 to 10 percent of Chinese orders. Its top chips are banned for China, so demand piles onto the best card the rules still allow.
Why it mattersExport rules are not killing China's appetite for Nvidia, only pushing it toward weaker chips. A shortfall this large also hands local chipmakers a ready market.
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