In a major twist, Nvidia is set to restart shipments of its H20 AI chips to China—after securing approval from the U.S. government that required export licenses will now be granted. This move reverses April’s export freeze and marks a big win for Nvidia and global AI markets.
What changed?
Earlier this year, U.S. officials tightened rules on Nvidia’s H20 chips—designed as a “nerfed” version of its flagship H100 GPU—citing national security worries. The freeze forced Nvidia to write off billions in unsold inventory and miss out on billions in revenue. But after Nvidia CEO Jensen Huang lobbied Washington and met with President Trump, the tides turned. The U.S. reportedly agreed to issue the necessary licenses, allowing sales to resume.
Why this matters
China is a key market—making up about 13–17% of Nvidia’s revenue, roughly $17 billion last year. Now, companies like ByteDance and Tencent are racing to place orders as soon as the chips clear governmental approval. Chinese firms rely heavily on Nvidia’s CUDA-powered chips for AI development, and the return of the H20 revives their momentum.
Market ripple effects
The announcement ignited global markets—Nasdaq futures jumped, Hong Kong’s tech stocks rallied, and even memory-chip maker Samsung saw benefits. Nvidia’s market cap remains solid—hovering near $4 trillion—and this news adds fresh fuel to its growth trajectory.
Huang has become a central player in U.S.–China tech diplomacy. He’s travelled back-and-forth this year, appealing to American lawmakers while courting Chinese leaders. He argues that for the U.S. to remain the world’s AI leader, its tech stack must be adopted globally—including in China.
But there’s a catch—some U.S. officials worry these chips could end up aiding China’s military. Others warn that if trade tensions escalate again, stronger export limits could return—and that would hand the AI field to local Chinese rivals like Huawei .
Bottom line
This decision is a game‑changer for Nvidia and the AI tech race. It shows the U.S. is willing to balance national security with smart diplomacy. For Chinese firms, it’s a lifeline. For global markets, a green signal. And for Nvidia, it’s a giant step back into one of its most valuable markets.
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