Nvidia Resumes H20 AI Chip Sales to China Following Key Talks with Trump

Washington, D.C. — Nvidia announced it will restart sales of its H20 AI chips to China after CEO Jensen Huang met with President Donald Trump last week. This decision comes as a relief for the tech company, which faced halted shipments due to U.S. export controls.

The Trump administration has assured Nvidia that licenses for the H20 chips will be granted, marking the end of months of uncertainty. This halt had affected Nvidia’s access to one of its largest markets, leading to an estimated $2.5 billion in lost sales.

“This is a watershed moment for Nvidia and the overall U.S. tech industry,” said Daniel Ives, a senior analyst at Wedbush Securities. He noted that the return of sales to China would likely boost Wall Street’s growth estimates for Nvidia significantly over the coming years.

Nvidia had previously paused shipments of the H20 chips in April after the Trump administration introduced stricter export regulations as part of its trade policy. These limitations not only hampered Nvidia’s revenue potential but also allowed Chinese competitors to gain traction in AI technology.

<pIves described the negotiations as a high-stakes game, stating, “There is only one chip in the world fueling the AI revolution, and it’s Nvidia.” He emphasized the importance of the H20 chip, designed to comply with previous U.S. restrictions.

Huang’s meeting with Trump was focused on securing a favorable environment for AI exports, emphasizing the belief that AI should operate on American technology. He stated that general-purpose, open-source research is crucial for AI innovation.

As Nvidia’s stock surged over 5% in pre-market trading following the announcement, the company has expressed optimism about a revenue boost in the second half of 2025. Reports from Reuters indicate that Nvidia is also developing a new AI chip for China, aimed to meet the growing demand despite current export limitations on advanced models.

Nvidia’s role as a leader in AI chip technology has placed it in the spotlight, as it seeks to reintegrate China into its supply chain while navigating complex regulatory landscapes.