Latest news with #NVIDIAH20
Yahoo
15-07-2025
- Business
- Yahoo
Nvidia's Stock Looks Set to Soar on Resumption of H20 AI Chip Sales to China
Nvidia was reportedly assured by the U.S. government that it could resume sales to China of its H20 AI chip. Nvidia had designed the H20 specifically for the Chinese market after earlier U.S. export controls meant it couldn't sell its most advanced data center AI chips to China. Then in April, the government expanded the restrictions to include the H20, causing Nvidia to halt its sales and take charges of $4.5 billion on its fiscal Q1 results. 10 stocks we like better than Nvidia › On Monday night, Nvidia (NASDAQ: NVDA) announced that it will resume sales of its H20 artificial intelligence (AI) chip to China, which it had halted in April because of new U.S. government export controls, citing national security concerns. Nvidia's announcement came via an email just after 9:30 p.m. ET to investors who subscribe to the company's news and other releases with a link to a blog post. This is great news for investors and should help propel Nvidia stock higher. Nvidia's email announcement credited CEO Jensen Huang for the H20 news, stating that he "has been promoting AI this month in Washington, DC, and China -- emphasizing the benefits that AI will bring to business and society worldwide." But here's the core message for investors contained in Nvidia's email announcement: "NVIDIA is filing applications to sell the NVIDIA H20 GPU [graphics processing unit] again. The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon." Note the word "soon" -- Nvidia hopes to start deliveries "soon." Nvidia's fiscal second quarter ends in late July. So it seems likely that this H20 news will start making a major impact in the fiscal third quarter. More on potential financial implications follows. As I wrote at the time: "Nvidia stock fell 6.9% on Wednesday [April 16], following the tech giant's Tuesday night disclosure via a filing with the U.S. Securities and Exchange Commission (SEC) that it plans to take charges of up to $5.5 billion on its fiscal first-quarter results. The charges stem from the U.S. government enacting restrictions on the export of its H20 chip to China and select other countries." As it ended up, Nvidia took charges (for H20 products in inventory and purchase commitments) of less than the maximum that it had originally estimated. In late May, when it reported its fiscal first-quarter results, the total H20-associated charges were $4.5 billion. Yes, that's still huge. First, let's consider how the halt in H20 sales in mid-April affected Nvidia's results for its fiscal Q1 (ended on April 27). Its results were considerably hurt by this event. In addition to taking the $4.5 billion in charges, the company was unable to ship $2.5 billion in H20 chips that it had already produced. In other words, it "lost" sales of $2.5 billion. However, it was able to book H20 sales of $4.6 billion in the quarter prior to the implementation of the new export controls. Nvidia's Q1 total revenue was $44.1 billion. So, its $4.6 billion in H20 sales to China accounted for 10.4% of its total revenue. And had the company been able to ship the additional $2.5 billion in H20 chips, its H20 sales would have been $7.1 billion and 16.1% of its total revenue. This is a big chunk of total revenue and clearly shows the significance of the Chinese market. The good news is that investors can probably expect Nvidia's quarterly H20 sales to resume in the general ballpark of where they left off, if not higher. Monday night's news is fantastic for the stock. Nvidia has been firing on all cylinders, but investor concern over the company losing its Chinese market for its data center AI chips has likely kept the stock from rising as much as it otherwise would. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Beth McKenna has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Nvidia's Stock Looks Set to Soar on Resumption of H20 AI Chip Sales to China was originally published by The Motley Fool
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Business Standard
15-07-2025
- Automotive
- Business Standard
Trump admin to allow resumption of H20 AI chip sales to China: Nvidia
Nvidia on Tuesday announced that the US government has assured it of being granted licences to resume the sale of its H20 general processing units to clients in China, the company said in a statement. Sharing an update with its customers, Nvidia's Chief Executive Officer (CEO) Jensen Huang said that the company has started filling out applications to sell the NVIDIA H20 GPU again, adding that the company hopes to resume the deliveries soon. This comes after the sale of its H20 chips was halted in April and were designed specifically to bypass the US export controls targeting China. The development comes amid a preliminary trade deal between the US and China last month, which sought China to resume the exports of rare earth and the US to relax its export curbs, CNBC reported. The announcement of a potential policy reversal comes as Huang met with US President Donald Trump last week and policymakers in Washington.
Yahoo
16-04-2025
- Business
- Yahoo
US stock futures weaker after Nvidia warning due to US export ban
U.S. stock futures are pointing to a lower open, with a warning from chip maker Nvidia weighing on the market. Nvidia said it will record a $5.5 billion charge due to the U.S. export ban on its H20 chip for China. The U.S. government said it would require export licenses for some artificial-intelligence chips made by Nvidia and AMD, including "NVIDIA H20, AMD MI308, and their equivalents." AMD shares also fell on the requirement as well as first-quarter orders that fell below analysts' expectations. The company warned that President Donald Trump's erratic tariff policies were creating uncertainty for the industry and companies were holding back spending. The decline comes after stocks drifted lower on Tuesday as investors remained on edge over tariffs. Even though Trump showed signs of softening his aggressive tariff plan with an exemption last week for smartphones, computers and other electronics and floated a temporary exemption for autos, the administration continues to be amadamant more tariffs are coming soon. At 7:58 a.m. ET, futures tied to the blue-chip Dow index fell 0.02%, ro 10 points, to 40,565.00, while broad S&P 500 futures dropped 0.65%, or 35.25 points, to 5,393.00; and tech-heavy Nasdaq futures slipped 1.27%, 241.50 points, to 18,718.75. More earnings reports are due on Wednesday. Travelers, U.S. Bancorp, Abbott Labs, and Citizens Financial are among the companies are slated to report results. Investors will also get to see March retail sales data. Economists polled by Dow Jones expect, on average, a 1.2% increase, up from a 0.2% increase in February. Lately, survey data have shown consumers growing increasingly gloomy about the economy and inflation so investors will be looking to see if that poor outlook has translated into less spending. United Airlines reported adjusted earnings in the first three months of the year that topped analysts' forecasts. J.B. Hunt Transport Services' results in the first quarter beat analysts' expectations. Interactive Brokers missed earnings forecasts in the first three months of the year. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: US stock futures drop after Nvidia warning due to US export ban Sign in to access your portfolio
USA Today
16-04-2025
- Business
- USA Today
US stock futures weaker after Nvidia warning due to US export ban
US stock futures weaker after Nvidia warning due to US export ban Show Caption Hide Caption JPMorgan's stock traders see record revenue in Q1 JPMorgan Chase's stock traders took in a record haul in the first quarter as the biggest US bank boosted equities markets revenue 48% to $3.81 billion. Sonali Basak reports on Bloomberg Television. Bloomberg U.S. stock futures are pointing to a lower open, with a warning from chip maker Nvidia weighing on the market. Nvidia said it will record a $5.5 billion charge due to the U.S. export ban on its H20 chip for China. The U.S. government said it would require export licenses for some artificial-intelligence chips made by Nvidia and AMD, including "NVIDIA H20, AMD MI308, and their equivalents." AMD shares also fell on the requirement as well as first-quarter orders that fell below analysts' expectations. The company warned that President Donald Trump's erratic tariff policies were creating uncertainty for the industry and companies were holding back spending. The decline comes after stocks drifted lower on Tuesday as investors remained on edge over tariffs. Even though Trump showed signs of softening his aggressive tariff plan with an exemption last week for smartphones, computers and other electronics and floated a temporary exemption for autos, the administration continues to be amadamant more tariffs are coming soon. At 7:58 a.m. ET, futures tied to the blue-chip Dow index fell 0.02%, ro 10 points, to 40,565.00, while broad S&P 500 futures dropped 0.65%, or 35.25 points, to 5,393.00; and tech-heavy Nasdaq futures slipped 1.27%, 241.50 points, to 18,718.75. More earnings reports are due on Wednesday. Travelers, U.S. Bancorp, Abbott Labs, and Citizens Financial are among the companies are slated to report results. Investors will also get to see March retail sales data. Economists polled by Dow Jones expect, on average, a 1.2% increase, up from a 0.2% increase in February. Lately, survey data have shown consumers growing increasingly gloomy about the economy and inflation so investors will be looking to see if that poor outlook has translated into less spending. Corporate news United Airlines reported adjusted earnings in the first three months of the year that topped analysts' forecasts. J.B. Hunt Transport Services' results in the first quarter beat analysts' expectations. Interactive Brokers missed earnings forecasts in the first three months of the year. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
