NVIDIA Stock Surges Following Approval of H20 Chip Sales and RTXpro GPU Release

NVIDIA shares rose 3.2% after CEO Jensen Huang announced that the US has approved the sale of H20 chips to China, boosting business prospects in the region. The company also plans to release the RTXpro GPU, enhancing their product lineup and catering to advanced graphics processing needs.

NVIDIA (NVDA) shares rose 3.2% after CEO Jensen Huang announced that the US has approved the sale of H20 chips to China, boosting business prospects in the region. The company also plans to release the RTXpro GPU, enhancing their product lineup and catering to advanced graphics processing needs.

The H20 GPU, designed specifically to comply with US government restrictions on exports of advanced chips to China, was halted in April by the Trump administration. NVIDIA has been working to resume sales, and the company has now received approval to start deliveries soon [1].

The approval comes amidst easing tensions between Washington and Beijing, with China relaxing controls on rare earth exports and the US allowing chip design software services to resume in China. NVIDIA's H20 chip was developed specifically for the Chinese market after US export restrictions were imposed in late 2023. The AI chip was NVIDIA’s most powerful legally available product in China until it was effectively banned by Washington in April [1].

The H20 ban forced NVIDIA to write off $5.5 billion in inventories, and Huang told the Stratechery podcast earlier this year that the company also had to walk away from $15 billion in sales. NVIDIA also announced the development of a new AI chip designed specifically for China, called the RTX Pro GPU, described as "fully compliant" with US export controls [1].

NVIDIA's stock rose 3.2% following the announcement, reflecting investor optimism about the potential for increased sales in China. The company’s stock was indicated higher overnight, along with Advanced Micro Devices (AMD), Taiwan Semiconductor (TSM), and more [2]. This development also signals a positive outlook for AMD, which faces increased competition from Chinese tech giant Huawei and other makers of graphics processing units [2].

The H20 chip was developed specifically for the Chinese market after US export restrictions were imposed on national security grounds in late 2023. The AI chip was NVIDIA’s most powerful legally available product in China until it was effectively banned by Washington in April. The H20 ban forced NVIDIA to write off $5.5 billion in inventories, and Huang told the Stratechery podcast earlier this year that the company also had to walk away from $15 billion in sales [1].

NVIDIA's CEO Jensen Huang is scheduled to hold a media briefing in Beijing on Wednesday when he attends a supply chain expo, his second visit to China after a trip in April where he stressed the importance of the Chinese market. "The Chinese market is massive, dynamic, and highly innovative, and it’s also home to many AI researchers. Therefore, it is indeed crucial for American companies to establish roots in the Chinese market," Huang told Chinese state broadcaster CCTV on Tuesday [1].

The move to resume sales of the H20 chips comes amid easing tensions between Washington and Beijing, with China relaxing controls on rare earth exports and the United States allowing chip design software services to resume in China. "The uncertainties between the US and China remain high and despite a pause in H20’s ban, Chinese companies will continue to diversify their options to better protect their supply chain integrity," said He Hui, research director of semiconductors at Omdia [1].

NVIDIA also announced the development of a new AI chip designed specifically for China, called the RTX Pro GPU. The company described the model as “fully compliant” with US export controls and suitable for digital twin AI applications in sectors such as smart factories and logistics [1].

The graphics processing unit would be part of Nvidia’s latest generation Blackwell-architecture AI processors and was expected to be priced well below the H20 due to its weaker specifications and simpler manufacturing requirements [1].

China generated $17 billion in revenue for Nvidia in the fiscal year ending January 26, accounting for 13% of the company’s total sales, based on its latest annual report. Huang has consistently highlighted China as a critical market for Nvidia’s growth [1].

References:
[1] https://www.cnn.com/2025/07/15/business/nvidia-resume-h20-chip-sales-to-china-intl-hnk
[2] https://www.investors.com/news/technology/nvidia-trump-administration-resume-h20-ai-chip-sales-china/