Nvidia wins licenses to export H20 chips to China

U.S. authorities begin approving licenses for Nvidia to ship H20 chips to China, a move reported by the Financial Times that could lift investor sentiment.

Nvidia wins licenses to export H20 chips to China lifting NVDA stock

The U.S. Commerce Department has begun issuing licenses for Nvidia to export its H20 AI chips to China, the Financial Times reported. The move follows earlier restrictions on advanced AI chips under the Biden administration and a reversal after a meeting between Nvidia chief executive Jensen Huang and President Donald Trump. Nvidia had warned that a ban could wipe out roughly $8 billion in July-quarter sales, and its H20 chips generated $4.6 billion in revenue in Q1, with China accounting for about 12.5% of total revenue.
Analysts expect Nvidia's second-quarter results to show continued AI demand, with EPS around $1 and revenue near $45.7 billion, supported by AI developments such as GPT-5.

The license decision reduces a key business hurdle for Nvidia in a critical market and signals policymakers are willing to grant strategic flexibility amid broader tech tensions. Nvidia benefits from access to a large customer base in China, but the policy environment remains unpredictable and could tighten again.
The longer-term risks include dependence on China for growth and the possibility that new restrictions could hit margins or delay product launches. The H20 licensing is welcome, yet it does not resolve the political and regulatory risk that runs through Nvidia's business.

Highlights

Policy and markets move in step, and Nvidia stands at the intersection.