Nvidia Set to Resume H20 Chip Sales in China, Potentially Reclaiming Billions in Lost Revenue
Nvidia Corp. expects to resume sales of its H20 chips in China, just months after projecting an $8 billion revenue shortfall due to tightened U.S. export restrictions.
In a blog post published late Monday, Nvidia revealed that it is in the process of securing approval to sell the H20 chip—a modified version of its Hopper series—specifically designed to meet U.S. compliance rules for China. The company said it has received assurances from the U.S. government that licenses for these sales “will be granted.”
This marks a potential reversal of fortunes for Nvidia, which had warned in April of a major financial hit tied to regulatory changes. At the time, the company was informed it would need new licenses to export the H20 and subsequently recorded a $4.5 billion charge in the fiscal first quarter, citing diminished demand and excess inventory. The restrictions were blamed for $2.5 billion in lost revenue during the first quarter, with Nvidia projecting an additional $8 billion hit in the second quarter.
The announcement follows recent diplomatic meetings between U.S. and Chinese officials in Washington and China. If Nvidia can resume H20 shipments, it would be a significant boost for the company’s China operations, which had faced severe disruption.
Looking ahead, CEO Jensen Huang remains bullish on the broader artificial intelligence market, telling CNBC in May that AI could grow into a $50 billion opportunity within two to three years.
The U.S. Commerce Department has not yet commented on Nvidia’s latest update.
