China should allow limited purchases of Nvidia's H200 chips: newspaper

China is expected to allow "limited" purchases of Nvidia's H200 graphics processing units by the country's top artificial intelligence (AI) companies amid a supply shortage, according to The Information.

Nvidia has been working hard to convince Wall Street that the autonomous central processing unit could be another big source of revenue. And that appears to be getting closer after AI startup Perplexity said it will use Nvidia's Vera Central Processing Unit (CPU).

Nvidia has already invested in Perplexity, which was valued at around $20 billion in a fundraising round last September.

Nvidia has estimated that standalone Vera CPU sales could generate $20 billion in revenue this year, with a total potential market of $200 billion. The market is still waiting to see how the acceptance of Nvidia's CPUs will be compared to those from Intel and Advanced Micro Devices (AMD).

Meanwhile, Bank of America Securities analyst Vivek Arya reiterated a buy rating on Nvidia shares, with a price target of $350 per share. In a note to clients, Arya said investor concerns about the company are misplaced, including pressure on gross margin due to higher memory costs, competition from ASIC chipmakers and vendor financing for customers.

Nvidia shares closed up more than 3% this Wednesday (8).

*With information from Dow Jones Newswires

Source: CNN