Nvidia Unveils H20 Relaunch and Custom AI Chip for China Market

Nvidia is making a comeback in the Chinese market with the relaunch of its H20 GPU and the introduction of a new chip, RTX Pro, designed specifically for China under current trade rules. Nvidia CEO Jensen Huang has been meeting with U.S. and Chinese officials to address trade limits that could impact Nvidia's sales in key markets like China. TipRanks analysts have given NVDA a Strong Buy consensus rating, with an average stock price target of $178.89, suggesting a potential upside of 9.03% from the current level.

Nvidia is set to resume sales of its H20 graphics processing units (GPUs) to China, following a meeting between CEO Jensen Huang and U.S. policymakers, according to sources familiar with the matter [1]. The company has been working on a revised chip design that complies fully with current U.S. export regulations. Regulatory clearance is expected shortly, with deliveries of the updated H20 GPUs to China potentially starting soon.

The news has been well-received in the market, with U.S. equity index futures up, helped by a rise in NVDA stock [2]. Nvidia's stock was indicated higher overnight, along with Advanced Micro Devices (AMD) and Taiwan Semiconductor (TSM), following the announcement. This positive sentiment is likely due to the expected clearance of Nvidia's H20 GPUs, which could boost sales to China.

In addition to the H20 GPUs, Nvidia has also announced a new "fully compliant" GPU, the RTX Pro, designed specifically for China under current trade rules. The company is seeking to reassert its commitment to the Chinese market, with CEO Jensen Huang planning a visit to discuss the benefits of AI and ways for researchers to advance safe and secure AI [3].

Nvidia's strategic moves come as the company seeks to navigate the complex landscape of U.S.-China trade relations. The company has been one of several big tech companies caught up in the U.S.-China tariff war, with export controls impacting its sales in key markets like China. However, Nvidia's clients in China have reportedly been testing samples of the new chip and expressed interest in significant orders.

The news is significant for Nvidia, as it continues to dominate the U.S. market and seeks to expand its presence in China. The company has become the first to achieve a $4 trillion market capitalization, with NVDA stock up 6.5% in the last five days [4].

References:

[1] https://www.forexlive.com/stock-market-update/nvidia-to-resume-h20-gpu-sales-to-china-with-us-backing-sources-say-20250715/
[2] https://www.investors.com/news/technology/nvidia-trump-administration-resume-h20-ai-chip-sales-china/
[3] https://www.cnbc.com/2025/07/15/nvidia-says-us-government-will-allow-it-to-resume-h20-ai-chip-sales-to-china.html
[4] https://cryptorank.io/news/feed/2379e-nvidia-nvda-to-launch-new-ai-chip-specifically-for-china-ft