Nvidia said it plans to restart sales of its H20 AI chips to China. This decision follows fresh support from the U.S. government, marking a major shift in trade policy. The company had stopped selling the chips after the U.S. imposed export rules in April.
The H20 chip was designed to follow earlier U.S. export limits but still meet the needs of Chinese buyers. However, in April, the U.S. told Nvidia it needed a license to sell the chips to China. This caused a halt in shipments and hurt Nvidia’s sales in the region.
In a new statement, Nvidia said the U.S. government has now assured them that licenses will be granted. The company hopes to begin deliveries of the H20 chip to China soon.
Nvidia CEO Jensen Huang has spoken out against the export controls in recent months. He said these rules harm America’s tech leadership. In May, Huang revealed that the restrictions had already cut Nvidia’s share of the China market by nearly half.
Last week, Huang met with U.S. President Donald Trump. During the meeting, Huang supported the administration’s job creation and onshoring goals. He also backed efforts to help the U.S. lead in artificial intelligence.
The shift in U.S. policy may be linked to this meeting. It also follows a new trade agreement between the U.S. and China in June. That deal included plans to reduce export controls on both sides.
As part of its strategy, Nvidia has launched a new graphics chip called RTX PRO. The company says it fits well with smart factories and logistics systems. However, it is not clear whether the chip fully meets export rules for China.
Reports from May suggested that Nvidia was building a new AI chip just for China. This chip would be less powerful than the H20 but would avoid U.S. trade limits. Despite this, the return of the H20 chip came as a surprise to some experts.
Ray Wang, a tech analyst at Futurum Group, called the move a big win for Nvidia. He said it would help the company regain its strong position in China’s AI chip market. Wang also believes that both the H20 shipments and new export-friendly chips will fuel Nvidia’s growth in the next few months.
Nvidia’s stock price rose by 4.5% on trading platform Robinhood after the announcement.
At the same time, the company confirmed that Huang is now in China. He has met with officials and tech leaders to talk about the use of AI and how to keep it safe and secure.
When the U.S. export ban on the H20 chip started in April, many thought Chinese chipmakers would benefit. Firms like Huawei were seen as likely winners. But while China has made progress in building its own AI chips, experts say they still lag behind Nvidia and other global chipmakers like Taiwan Semiconductor Manufacturing Company.
Louise Loo, chief China economist at Oxford Economics, told CNBC that lifting the ban would help Chinese tech firms. It would give them more time to improve their own products while still using Nvidia chips. She also said many Chinese firms still prefer Nvidia’s advanced chip technology.
