KEY TAKEAWAYS
Nvidia said it plans to resume sales of its best-selling H20 AI chip to China, days after CEO Jensen Huang met with President Donald Trump.
Shares of Nvidia jumped more than 4% Tuesday following the news. Shares of Advanced Micro Devices (AMD), other chip companies, and Nvidia partners including Super Micro Computer (SMCI) also rose. (Read Investopedia’s full coverage of today’s trading here.)
“NVIDIA is filing applications to sell the NVIDIA H20 GPU again,” the company said in a blog post late Monday. “The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,” the chipmaker said.
The green light from Washington marks a big win for Nvidia, as analysts had said the restrictions would send sales in China, a key market, down to “zero.” The AI chipmaker said in May that it took a $4.5 billion charge in the fiscal first quarter associated with export curbs imposed by the Trump administration on sales of its H20 products to China. The H20 chips are less powerful than Nvidia’s newer ones and had been tailored to meet prior export limits for the Chinese market.
Separately, Nvidia announced a new RTX PRO AI chip that it said was “fully compliant” for the Chinese market. The White House didn’t immediately respond to an Investopedia request for comment.
Nvidia shares entered Tuesday up by more than a fifth this year.
This article has been updated since it was first published to reflect more recent share price values.