Nvidia H20 Chip Sales to China Approved by US: Jim Cramer Predicts Market Boost

Nvidia's H20 chip sales to China have been approved by the US government, a move that could boost the stock price and impact market sentiment. Analysts, including Jim Cramer and Nigam Arora, believe this news could turn the Nasdaq futures around. The approval comes after extensive lobbying efforts by Nvidia CEO Jensen Huang and aligns with a preliminary trade framework agreed upon by Washington and Beijing.

Nvidia Corp. (NASDAQ:NVDA) has received approval from the U.S. government to resume sales of its H20 artificial intelligence (AI) chips to China, a move that could significantly impact the tech giant's stock price and market sentiment. This approval comes after extensive lobbying efforts by Nvidia CEO Jensen Huang and aligns with a preliminary trade framework agreed upon by Washington and Beijing.

The approval, announced late Monday, allows Nvidia to restart sales of its H20 graphics processing unit (GPU) chips, which were previously banned in April. The H20 chip, designed to comply with U.S. export controls, is Nvidia's most powerful AI chip legally available in China. This development has drawn immediate and enthusiastic reactions from market commentators, including Jim Cramer and Nigam Arora, who believe this news could turn the Nasdaq futures around [1].

The decision to lift the ban on H20 chip sales follows a period of intense diplomatic efforts by Nvidia, including meetings with U.S. policymakers and Chinese counterparts. Nvidia's statement confirmed that the company is filing applications to restart H20 exports, with licenses expected to be granted soon. This approval is seen as a significant and positive development for Nvidia, which will enable the company to reinforce its leadership in China [2].

The H20 chip has been in high demand in China, with orders reportedly reaching $18 billion since January. The resumption of sales could unlock billions in revenue for Nvidia, which had previously suffered a $15 billion loss in sales and a $5.5 billion inventory write-off due to the ban. Analysts estimate that Nvidia could ship 1 million to 1.2 million H20 GPUs in 2025, potentially adding billions to its top line [2].

Nvidia's stock price has shown a positive reaction to the news, with shares up 4.28% on Robinhood and the stock ending 0.52% lower at $164.07 apiece on Monday. The stock has advanced 18.62% on a year-to-date basis and 27.74% over a year. The broader AI semiconductor supply chain also responded, with Advanced Micro Devices (AMD) gaining 4% in pre-market trading [1].

The approval to resume H20 sales is a major catalyst for growth and represents what could be a new inflection point for NVDA stock. However, the path forward is not completely smooth, as several U.S. senators have called on Nvidia to limit which companies and industries it meets with on future sales. Despite this, the reopening of the China market to Nvidia for advanced AI chip sales is a major growth opportunity for the company, positioning it for a transformative future.

References:
[1] https://finance.yahoo.com/news/jim-cramer-says-nvidia-getting-183136752.html
[2] https://moneymorning.com/2025/07/15/nvidias-game-changing-win-h20-chip-sales-to-china-back-on/