Nvidia Corp (NASDAQ:NVDA, ETR:NVD)’s new RTX6000D chip, which was specifically designed for the Chinese market, has received lukewarm demand from major Chinese technology firms such as Alibaba, Tencent and ByteDance.
According to a Reuters report, which cited two people with knowledge of procurement discussions, firms are opting not to place orders.
Priced at around 50,000 yuan (US$7,000), the RTX6000D is considered costly and underperforms compared with Nvidia’s higher-end RTX5090, which, although officially banned from sale in China under US regulations, remains accessible through grey market channels at less than half the cost.
Despite its recent release, the RTX6000D struggles to match the price-performance balance of both the RTX5090 and other available GPUs.
Chinese tech companies are also waiting for clarity on Nvidia’s other AI chips, including the H20, and are anticipating approval of the more powerful B30A, which would surpass current restricted models.
The chip’s launch reflects Nvidia’s efforts to navigate US export controls, which have restricted the sale of its most advanced GPUs to China in an effort to limit the country’s technological progress. The RTX6000D represents a downgraded, compliant alternative.
Wedbush analysts remain bullish on Nvidia’s future in China despite the report of tepid demand stemming from high price, performance questions, and the potential availability of other preferable options.
“Net, we continue to see opportunity for Nvidia to realize future revenues from China (both our model and Street numbers stripped out any contribution following the last earnings announcement), but we remain less certain when and to what extent sales will materialize,” they wrote.
Shares of Nvidia edged 0.8% lower following the report.