Nvidia says it’s clear to sell its H20 AI chips in China again, stock jumps
The US government has “assured” Nvidia it will be granted necessary licenses to resume selling GPUs to China, the company said in a statement, after CEO Jensen Huang met President Trump last week.
The apparent green light, unconfirmed by the Trump administration at the time of writing, would reverse the Commerce Department’s move in April to restrict H20 sales in China, which prompted the chip designer to eat a $4.5 billion impairment charge in its Q1 earnings. This would mark the successful culmination of a multi-month campaign by the company to restore access to what Huang calls a $50 billion data center market.
Nvidia said it’s hoping to resume H20 deliveries “soon,” while Huang also told reporters in Beijing that the company has developed a new AI chip for the Chinese market as well, confirming earlier reports by Reuters. The new chips are built on Nvidia’s most powerful tech on the market, but downgraded to assuage the US government’s concerns around exports to China, per sources cited by The Wall Street Journal. Access to the Chinese market has been a focal point for the stock, with the country mentioned a whopping 27 times during its most recent earnings call.
Huang told Chinese media he was “very happy” with the news, and Nvidia shares are up 4.5% in early trading on Tuesday.
In its Q1 earnings report, Nvidia said it would be losing out on $8 billion of revenue in the second quarter in light of the H20 export ban, which is more than the total sales of 384 S&P 500 companies — including semi peers AMD and Applied Materials, as well as household names like McDonald’s and Mastercard — as of their most recent quarterly report, at the time of that announcement.
Nvidia said it’s hoping to resume H20 deliveries “soon,” while Huang also told reporters in Beijing that the company has developed a new AI chip for the Chinese market as well, confirming earlier reports by Reuters. The new chips are built on Nvidia’s most powerful tech on the market, but downgraded to assuage the US government’s concerns around exports to China, per sources cited by The Wall Street Journal. Access to the Chinese market has been a focal point for the stock, with the country mentioned a whopping 27 times during its most recent earnings call.
Huang told Chinese media he was “very happy” with the news, and Nvidia shares are up 4.5% in early trading on Tuesday.
In its Q1 earnings report, Nvidia said it would be losing out on $8 billion of revenue in the second quarter in light of the H20 export ban, which is more than the total sales of 384 S&P 500 companies — including semi peers AMD and Applied Materials, as well as household names like McDonald’s and Mastercard — as of their most recent quarterly report, at the time of that announcement.
