Nvidia to Resume H20 AI Chip Sales to China with US Government Licenses

Nvidia plans to resume H20 AI chip sales in China after receiving assurances from the US government that it would be granted licenses. CEO Jensen Huang met with President Trump and is in Beijing to attend a supply chain expo. Nvidia had previously halted H20 sales due to expanded US restrictions on AI hardware. The company expects new licenses to be granted and hopes to resume deliveries soon.

Nvidia (NASDAQ: NVDA) has announced plans to resume sales of its H20 AI chips in China after receiving assurances from the US government that it would be granted the necessary licenses. The decision comes following a meeting between Nvidia CEO Jensen Huang and President Donald Trump at the White House on July 10, 2025 [3].

The meeting, which took place amidst ongoing discussions regarding tighter regulations on the export of AI chips to China, resulted in assurances from the US government that Nvidia would be granted licenses to resume sales of its H20 AI chips in the Chinese market. This move is a significant step forward for Nvidia, which had previously halted H20 sales due to expanded US restrictions on AI hardware [3].

Nvidia's decision to resume H20 sales in China is also driven by the growing demand for advanced AI technology in the country. According to a recent report, Chinese tech firms have placed orders for hundreds of thousands of units of Nvidia's new B30 AI GPU, which offers performance comparable to the H20 but is optimized for small to medium AI models and cloud services [2].

The resumption of H20 sales in China is expected to have a positive impact on Nvidia's financial performance. China generated $17 billion in revenue for Nvidia in the fiscal year ending January 26, 2025, accounting for 13% of the company’s total sales [1]. Resuming sales in this critical market could significantly boost Nvidia's revenue and market share in the AI chip sector.

However, the resumption of H20 sales in China also comes with certain risks. The US government has imposed restrictions on the export of Nvidia's most advanced chips to China, citing concerns over potential military applications. Nvidia has faced increased competition from Chinese tech giant Huawei and other makers of graphics processing units in the AI chip market [1].

Despite these challenges, Nvidia remains optimistic about the future of its AI chip business in China. The company's market value topped $4 trillion for the first time last week, solidifying its position as Wall Street's central player in the race to dominate AI technology [1].

In conclusion, Nvidia's decision to resume H20 AI chip sales in China is a significant step forward for the company and the AI chip industry as a whole. The move is driven by growing demand for advanced AI technology in China and the need to maintain Nvidia's market share in the competitive AI chip sector. However, the resumption of sales in China also comes with certain risks and challenges, including the potential impact of US government restrictions on AI hardware exports.

References:
[1] https://finance.yahoo.com/news/nvidia-ceo-hold-media-briefing-111149055.html
[2] https://www.tweaktown.com/news/106374/nvidias-new-b30-ai-gpu-for-china-expected-to-have-significant-demand-75-as-fast-the-h20/index.html
[3] https://www.cnbc.com/2025/07/10/nvidia-jensen-huang-donald-trump-4-trillion.html