$NVDA - NVIDIA'S H20 CHIP SUPPLY CAN'T MATCH CHINA'S SOARING DEMAND: JEFFERIES Jefferies says Nvidia’s H20 AI chip stockpile (600K–900K units) falls short of China’s demand, which could hit 1.8M units, following a temporary easing of U.S. export restrictions. Despite supply limits, Chinese firms prefer Nvidia chips due to its CUDA ecosystem, superior performance, and limited local alternatives. Jefferies expects strong demand to continue—even for downgraded future chips like the upcoming B30 (Q4 2025). It raised China’s 2025 AI capex forecast by 40% to $108B, with no sign of slowing AI investments.