Nvidia to Resume H20 Chip Sales in China Amid Eased US Export Curbs

Nvidia Corporation (NASDAQ: NVDA) announced it will soon resume sales of its H20 AI processor in China, following improved trade ties between the U.S. and China. CEO Jensen Huang met with officials from both nations, reinforcing the company’s optimism as it reapplies for export licenses.

The H20 GPU, tailored for China’s AI market under earlier U.S. restrictions, had been effectively blocked due to tightened export controls imposed by the Trump administration. Nvidia previously warned of up to $5.5 billion in potential losses stemming from those restrictions, highlighting China’s importance as a major revenue source.

In a statement, Nvidia confirmed it is “filing applications to sell the H20 GPU again” and that “the U.S. government has assured Nvidia that licenses will be granted.” Shares of the chipmaker rose 3.3% to $169.40 following the news.

The H20 has gained widespread adoption among leading Chinese tech firms such as Tencent, Baidu (NASDAQ: BIDU), Alibaba (NYSE: BABA), and DeepSeek, making it a cornerstone for AI-driven operations in smart factories and logistics. Nvidia also unveiled a new GPU designed specifically for the Chinese AI market.

This policy shift follows Washington’s recent decision to lift export restrictions for several chip design firms, including Synopsys (NASDAQ: SNPS), allowing them to restart sales to China. In parallel, both countries have agreed to ease mutual trade tariffs during bilateral negotiations in May and June.

Huang has been vocal about U.S. chip export policies, previously calling them a “failure” that risks cutting American firms off from one of the world’s largest AI markets. Nvidia’s move to re-enter China comes as AI demand in the region surges, positioning the firm to regain momentum in a key growth market.