NVIDIA is preparing to resume sales of its powerful H20 AI chips to China after undergoing export restrictions, which may significantly alter the market situation.
Resumption of H20 Chip Sales
After months of export restrictions, NVIDIA plans to resume sales of its H20 chips to China. This decision follows assurances from the U.S. government regarding license approvals. The chips were specifically designed for the Chinese market after earlier restrictions in 2023. However, new export controls imposed in April 2025 halted sales and cost NVIDIA billions in losses.
China's Importance to NVIDIA
China is a key market for NVIDIA. In the last fiscal year, the Chinese market brought in $17 billion, making up 13% of the company’s total revenue. Despite rising domestic competition from firms like Huawei, the demand for NVIDIA's chips remains strong due to its unique CUDA platform. CEO Jensen Huang has repeatedly emphasized the value of the Chinese market.
New AI Chips for China
As the company works to revive H20 sales, it has also announced the RTX Pro, a new AI chip tailored for the Chinese market. This chip complies fully with U.S. export rules and is designed for smart factories and logistics. Early reports suggest it will be cheaper and less powerful than the H20 but easier to manufacture.
The return of H20 sales could spark new growth for NVIDIA in China, although tensions between Washington and Beijing persist. Nevertheless, NVIDIA remains the AI chip leader in the Chinese market.
