Nvidia will resume sales of its H20 AI chips to China after CEO Jensen Huang met with President Donald Trump within the White House last week in an effort to persuade him to remove export controls that had hamstrung the corporate.
The Trump administration has assured Nvidia that licenses to export the chips might be granted, ending months of halted shipments that had severely impacted the corporate’s access to one in all its largest markets, in line with an announcement from the firm.
The news sent Nvidia’s stock soaring greater than 5% in pre-market trading. Last week, the chipmaker became the primary public company in history to surpass a $4 trillion market valuation.
Daniel Ives, senior analyst at Wedbush Securities, hailed the event on Tuesday as “a watershed moment for Nvidia, the AI Revolution thesis, and the general US tech industry,” called the choice “a monster win for the Godfather of AI Jensen and Nvidia.”
He added that the green light will likely propel Wall Street’s growth estimates for Nvidia “meaningfully over the approaching years with China back within the fold.”
In April, Nvidia had paused shipments of the H20 chips — resulting in $4.5 billion in inventory write-downs and an estimated $2.5 billion in lost projected sales.
The corporate halted sales of the chips after the Trump Administration implemented a licensing requirement as a part of the president’s “Liberation Day” trade moves.
The halt not only impacted revenue but gave Chinese rivals a gap within the race for AI dominance.
“That is all a game of high-stakes poker between Nvidia and the Trump Administration,” Ives wrote in a note to clients.
“There is barely one chip on the planet fueling the AI Revolution and it’s Nvidia. That’s clearly understood each within the Beltway and Beijing — it’s the brand new gold or oil on this world.”
The H20 chip was originally engineered to comply with earlier US export controls on China.
With export licenses now expected, the corporate anticipates a big boost in revenue in the course of the second half of 2025.
In May, Reuters reported that Nvidia was preparing to launch a brand new AI chip in China, based on the RTX Pro 6000D, priced significantly lower than the H20 resulting from its weaker specifications and simpler manufacturing requirements.
The chip could be a part of Nvidia’s latest generation of Blackwell-architecture AI processors.
China generated $17 billion in revenue for Nvidia within the fiscal 12 months ending January 26, accounting for 13% of the corporate’s total sales, in line with its latest annual report.
Nvidia has been pushing to re-integrate China into its supply chain, though Huang’s visit drew scrutiny in each countries. A bipartisan group of US senators recently sent a letter to Huang urging him not to fulfill with Chinese firms connected to military or intelligence bodies.
During his visits, Huang said the world has reached an inflection point where AI has grow to be a fundamental resource, like “energy, water and the web.”
He emphasized Nvidia’s support for open-source research, foundation models, and applications that “democratise AI” and empower emerging economies.
“General-purpose, open-source research and foundation models are the backbone of AI innovation,” he told reporters in Washington.
“We consider that each civil model should run best on the US technology stack, encouraging nations worldwide to decide on America.”
Investor enthusiasm reflects Nvidia’s dominant grip on the AI hardware market, where it commands an estimated 97% share of the GPU accelerator segment.
GPU accelerators are powerful computer chips that help speed up complex tasks like training artificial intelligence systems.
They work alongside regular processors to handle the heavy lifting of AI computations — just like a turbocharger in a automobile engine.
Nvidia makes most of those chips, which is why it plays such an enormous role within the AI boom.
Meanwhile, rival chipmakers akin to AMD and Intel are expected to introduce their very own offerings to fulfill Chinese demand for AI computing, putting additional pressure on regulators and global suppliers alike.
The Post has sought comment from the White House.
Nvidia will resume sales of its H20 AI chips to China after CEO Jensen Huang met with President Donald Trump within the White House last week in an effort to persuade him to remove export controls that had hamstrung the corporate.
The Trump administration has assured Nvidia that licenses to export the chips might be granted, ending months of halted shipments that had severely impacted the corporate’s access to one in all its largest markets, in line with an announcement from the firm.
The news sent Nvidia’s stock soaring greater than 5% in pre-market trading. Last week, the chipmaker became the primary public company in history to surpass a $4 trillion market valuation.
Daniel Ives, senior analyst at Wedbush Securities, hailed the event on Tuesday as “a watershed moment for Nvidia, the AI Revolution thesis, and the general US tech industry,” called the choice “a monster win for the Godfather of AI Jensen and Nvidia.”
He added that the green light will likely propel Wall Street’s growth estimates for Nvidia “meaningfully over the approaching years with China back within the fold.”
In April, Nvidia had paused shipments of the H20 chips — resulting in $4.5 billion in inventory write-downs and an estimated $2.5 billion in lost projected sales.
The corporate halted sales of the chips after the Trump Administration implemented a licensing requirement as a part of the president’s “Liberation Day” trade moves.
The halt not only impacted revenue but gave Chinese rivals a gap within the race for AI dominance.
“That is all a game of high-stakes poker between Nvidia and the Trump Administration,” Ives wrote in a note to clients.
“There is barely one chip on the planet fueling the AI Revolution and it’s Nvidia. That’s clearly understood each within the Beltway and Beijing — it’s the brand new gold or oil on this world.”
The H20 chip was originally engineered to comply with earlier US export controls on China.
With export licenses now expected, the corporate anticipates a big boost in revenue in the course of the second half of 2025.
In May, Reuters reported that Nvidia was preparing to launch a brand new AI chip in China, based on the RTX Pro 6000D, priced significantly lower than the H20 resulting from its weaker specifications and simpler manufacturing requirements.
The chip could be a part of Nvidia’s latest generation of Blackwell-architecture AI processors.
China generated $17 billion in revenue for Nvidia within the fiscal 12 months ending January 26, accounting for 13% of the corporate’s total sales, in line with its latest annual report.
Nvidia has been pushing to re-integrate China into its supply chain, though Huang’s visit drew scrutiny in each countries. A bipartisan group of US senators recently sent a letter to Huang urging him not to fulfill with Chinese firms connected to military or intelligence bodies.
During his visits, Huang said the world has reached an inflection point where AI has grow to be a fundamental resource, like “energy, water and the web.”
He emphasized Nvidia’s support for open-source research, foundation models, and applications that “democratise AI” and empower emerging economies.
“General-purpose, open-source research and foundation models are the backbone of AI innovation,” he told reporters in Washington.
“We consider that each civil model should run best on the US technology stack, encouraging nations worldwide to decide on America.”
Investor enthusiasm reflects Nvidia’s dominant grip on the AI hardware market, where it commands an estimated 97% share of the GPU accelerator segment.
GPU accelerators are powerful computer chips that help speed up complex tasks like training artificial intelligence systems.
They work alongside regular processors to handle the heavy lifting of AI computations — just like a turbocharger in a automobile engine.
Nvidia makes most of those chips, which is why it plays such an enormous role within the AI boom.
Meanwhile, rival chipmakers akin to AMD and Intel are expected to introduce their very own offerings to fulfill Chinese demand for AI computing, putting additional pressure on regulators and global suppliers alike.
The Post has sought comment from the White House.
