Nvidia's H20 Chip Sale to China Approved by Trump Administration

Nvidia CEO Jensen Huang announced that the US government has approved the sale of Nvidia's advanced H20 computer chips to China, which are used to develop artificial intelligence. The approval came after Huang met with Trump and other US policymakers. Huang stated that half of the world's AI researchers are in China and that it's essential for American companies to compete and serve the market there. Nvidia had previously profited from rapid AI adoption, becoming the first company to surpass $4 trillion in market value.

Nvidia CEO Jensen Huang announced that the U.S. government has approved the sale of the company's advanced H20 AI computer chips to China. This development comes after Huang met with President Donald Trump and other U.S. policymakers to advocate for the easing of restrictions. The approval is expected to have a significant impact on Nvidia's business and technology relations between the U.S. and China.

In April 2025, the White House tightened export controls, blocking the H20 and similar chips, especially from Nvidia and AMD, from sale to China. The restriction was lifted following months of lobbying by Nvidia and other U.S. tech firms. The sudden export halt led to a USD 4.5 to 5.5 billion loss in sales for Nvidia, causing significant financial trouble as Chinese firms began turning to alternatives like Huawei. However, the new approval is expected to boost Nvidia and its supply chain.

The news of the approval led to renewed activity in both U.S. tech stocks and Hong Kong's Hang Seng Tech Index. The broader market saw a slight rise, with the Nasdaq 100 ending the previous trading session at 22,855.63, up 75.03 points, or 0.33%. However, Nvidia shares slipped slightly, closing at USD 164.07, down by 0.85 points or 0.52%, due to some profit booking. In the Asian market, as of 1 PM IST, the Hang Seng Index (HSI) was trading at 24,476.21, up by 272.89 points, or 1.13%.

Nvidia's H20 chips had been designed to bypass earlier export controls on Beijing. The company hopes to start deliveries soon, following the U.S. government's assurance that licenses will be granted. The potential resumption of H20 shipments, alongside the upcoming rollout of new export control-compliant AI chips for the Chinese market, should serve as a fresh growth catalyst for Nvidia in the coming quarters.

Reference List:
[1] https://www.goodreturns.in/news/jensen-huang-announces-u-s-approval-for-nvidias-h20-ai-chip-exports-to-china-1442751.html
[2] https://www.cnbc.com/2025/07/15/nvidia-says-us-government-will-allow-it-to-resume-h20-ai-chip-sales-to-china.html
[3] https://www.nbclosangeles.com/news/business/money-report/nvidia-says-u-s-government-will-allow-it-to-resume-h20-ai-chip-sales-to-china/3744920/