Nvidia is set to restart sales of its H20 AI chips to China following a meeting between CEO Jensen Huang and President Trump at the White House last week.
The Trump administration has assured Nvidia it will receive a license for chip exports, putting an end to a multi-month suspension that really impacted the company’s foothold in one of its largest markets.
The news has positively influenced Nvidia’s stock, with shares climbing over 5% in pre-market trading. In fact, just last week, Nvidia became the first publicly traded company to exceed a $4 trillion market valuation.
Daniel Ives, a senior analyst at Wedbush Securities, referred to this moment as Nvidia’s “Basin Moment,” suggesting that the company is positioning itself as a revolutionary player in the U.S. technology landscape.
Interestingly, he pointed out that some analysts expect Nvidia’s Wall Street growth estimates might experience significant fluctuations in the coming years.
Earlier this year in April, Nvidia halted shipments of the H20 chips, which resulted in a staggering $4.5 billion stock write-off along with an estimated $2.5 billion hit in sales. The company’s operations were affected by newly implemented licensing requirements under Trump’s trade strategy.
This suspension not only changed revenue trajectories but also gave a competitive edge to Chinese companies in the quest for AI leadership.
According to Ives, this situation resembles a high-stakes poker game involving both Nvidia and the Trump administration. He stated emphatically that there’s only one key chip, and it’s clear to both Washington and Beijing how significant it is—almost like a new form of gold or oil in today’s market.
The H20 chip was designed to align with previous U.S. export controls to China.
With export licenses expected soon, Nvidia anticipates a notable increase in revenue during the latter half of 2025.
In May, it surfaced that Nvidia was gearing up to introduce a new AI chip in China, based on the recently developed RTX Pro 6000D.
This chip is part of Nvidia’s latest Blackwell Architecture AI lineup.
According to the latest annual report, Nvidia generated $17 billion in revenue from China, which accounts for about 13% of its overall income for the fiscal year ending January 26.
Nvidia is pushing for reintegration into the Chinese supply chain, though Huang’s recent visit has drawn scrutiny from both nations. A bipartisan group of U.S. Senators sent a letter urging Huang to avoid meetings with Chinese military factions or companies linked to intelligence activities.
During his visit, Huang emphasized that we are at a pivotal moment in our world where AI is becoming a crucial resource, alongside essentials like energy and water.
He also highlighted NVIDIA’s commitment to open-source research and foundational models that aim to “democratize AI” and uplift developing economies.
Huang remarked that open-source research forms the backbone of AI innovation, suggesting that various models should ideally integrate into the U.S. tech ecosystem while encouraging global partnerships with America.
Investor enthusiasm mirrors Nvidia’s stronghold on the AI hardware sector, reportedly commanding a massive 97% of the GPU accelerator market share. These powerful chips are indispensable for accelerating complex AI training tasks and effectively act like a turbocharger for computational functions.
Nvidia manufactures the majority of these chips, which explains its pivotal role in the ongoing AI boom.
At the same time, competitors like AMD and Intel are anticipated to launch their own offerings to satisfy China’s growing demand for AI computing.
A comment has been requested from the White House regarding this matter.
