- Nvidia could soon resume the sale of H20 chips in China
- CEO Jensen Huang has contacted China and the United States
- The company lost billions in sales as a result of export prohibitions
Nvidia plans to resume the sales of her AI H20 chips to China after the United States government confirmed that it would grant the technological giant export licenses.
The measure occurs after the visit of the CEO of Nvidia, Jensen Huang to China, and his discussions with the president of the United States, Donald Trump, all in an attempt to reach an agreement and resume sales.
As a result, it is believed that Chinese companies such as Bytedance and Tencent are now aligning to place orders in H20 chips after a brief pause for exports.
Nvidia could resume Chinese exports soon
Nvidia had already designed the H20 chip for China after US export restrictions, but was prohibited in April, which led to an estimated cost of $ 10-15 billion in lost sales and another $ 5.5 billion in inventory cancellations. The costs were so significant that Nvidia declared these losses in its quarterly gain report.
The possible approval of licenses by the United States government could reverse charges, generating additional income of $ 15-20 billion this year.
However, Trump does not necessarily express a preference for NVIDIA. AMD also awaits a review of its export licenses for MI308 chips after informing an impact of $ 1.5 billion smaller but remarkable for export curbs.
Although national competition has heated in China, many companies still prefer NVIDIA for their CUDA ecosystem. Huang also recognized China's importance for Nvidia's strategy, calling the “massive, dynamic and highly innovative” market (through Reuters).
The potential decrease in restrictions comes at an important time: China also facilitated rare earth export restrictions, suggesting that the two global superpowers could slowly be reaching an agreement.
With the income that continues to increase at an amazing pace, the impressive investors, Nvidia's shares continue to rise. The most valuable company in the world, Nvidia, now has a market capitalization of $ 4,187 billion.
