Latest news with #NVIDIAH20GPU
Yahoo
16-07-2025
- Business
- Yahoo
Nvidia Stock Jumps as Chipmaker Plans to Resume Sales of Key AI Chip to China
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. 'The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,' the chipmaker said. Nvidia shares jumped in Tuesday 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. Read the original article on Investopedia
Business Insider
16-07-2025
- Business
- Business Insider
White House AI czar says resuming Nvidia's chip sales to China is all about capping Huawei's growth
David Sacks, the White House's AI and crypto czar, said on Tuesday that allowing Nvidia to sell its chips in China again will help keep the Chinese telecommunications giant Huawei at bay. "There is a compelling argument here that you just don't want to hand Huawei the entire Chinese market when Nvidia is capable of competing for a big slice of it with a deprecated, less capable chip," Sacks said in an interview with Bloomberg's Ed Ludlow. Nvidia said in a blog post on July 14 that it was "filing applications to sell the NVIDIA H20 GPU again." The H20 chip is a China-specific product that Nvidia developed to meet chip export restrictions that the Biden administration had imposed. The chip was designed to be technologically inferior as compared to Nvidia's other offerings. "The US government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon," the post added. In April, Nvidia said the Trump administration wanted them to apply for special licenses if they wanted to sell their chips to China. Nvidia said it expected a charge of up to $5.5 billion due to those restrictions. Sacks said on Tuesday that the administration's volte-face is "nuanced" and "makes a lot of sense" when you consider the threat posed by Huawei. "We're not selling our latest greatest chips to China, but we can deprive Huawei of basically having this giant market share in China that they can then use to scale up and compete with us globally," Sacks told Ludlow. Last month, Sacks said in a separate interview with Bloomberg that " overly restrictive" chip export controls would hurt rather than help US tech dominance. "China is maybe one and a half to two years behind us in chip design. But Huawei is moving fast to catch up. And even before they fully caught up, I think you will see them exporting their chips for the global market," Sacks said. Sacks isn't the only one who's wary of Huawei. Jensen Huang, the CEO of Nvidia, said in an interview with the Financial Times published in March that Huawei is the " single most formidable technology company" in China. Huang said Huawei's "presence in AI is growing every single year" and Nvidia "can't assume they are not going to be a factor." "They have conquered every market they've engaged," Huang said of Huawei. He added that the US government's attempts to cap Huawei have been "done poorly." Nvidia's stock climbed by as much as 5% on Tuesday after it said it would resume its chip sales to China.
Yahoo
15-07-2025
- Business
- Yahoo
Jensen Huang Just Delivered Massive News for Nvidia Investors
Nvidia CEO Jensen Huang says that the company will be granted the licenses required to export its H20 AI chips to Chinese customers. The company was losing a chunk of revenue because of the restrictions on the export of its chips to China. Nvidia investors can now expect stronger-than-expected growth from the company this year. 10 stocks we like better than Nvidia › When Nvidia (NASDAQ: NVDA) released its fiscal 2026 first-quarter results (for the three months ended April 27) a couple of months ago, the company had bad news in store for investors as it was losing business in a key market thanks to export restrictions. Specifically, Nvidia pointed out in its previous earnings report that it bore a multibillion-dollar charge because of its inability to ship its H20 artificial intelligence (AI) chips to China. Its revenue during the quarter took a hit, while the guidance could have been much better if there were no restrictions on the sales of its chips to Chinese customers. But now, it looks like Nvidia is set to resume its sales in China. Let's take a closer look at this latest development that could give its business a big boost. Nvidia was informed by the U.S. government in April that it needs a license to export its China-specific H20 chip into that market. The company took a $4.5 billion charge on account of the excess inventory of the unsold H20 chips that it was left with. Nvidia also lost $2.5 billion in revenue because of this restriction during the quarter. Even worse, the company said that it will lose $8 billion in H20 revenue in the ongoing quarter thanks to the restrictions. However, a blog published by Nvidia on July 14 states that CEO Jensen Huang met with President Donald Trump and other policymakers, giving an update that the company "is filing applications to sell the NVIDIA H20 GPU again." More importantly, the blog points out that the U.S. government assured Nvidia that licenses will be granted and the company hopes for deliveries to begin soon. Nvidia shipped $4.6 billion worth of H20 processors to China in fiscal Q1 before the export restrictions kicked in. Including the lost sales during the quarter, Nvidia's Chinese revenue would have been just over $7 billion. And when we consider the $8 billion revenue that the company was expecting from this market in fiscal Q2, Nvidia's revenue from that market would have hit $15 billion in the first half of the current fiscal year. The Chinese business, therefore, was on track to generate $30 billion in annual revenue for the company this year before it was hamstrung by the export controls. Analysts are expecting $200 billion in revenue from Nvidia in the current fiscal year. That figure could have been significantly higher if the company were allowed to uninterruptedly sell its H20 processors into the Chinese market. However, Nvidia was caught in the crosshairs of the tariff-fueled trade war between the U.S. and China. The good part is that both countries show\ signs of easing restrictions on exports of key products, and it looks like Nvidia has benefited from the same. As such, it won't be surprising to see the chipmaker finish the current fiscal year in a stronger-than-expected position. We already saw how much revenue Nvidia could have minted from China in the current fiscal year. Now that the company is set to receive licenses to export its chips, there is a good chance that it could get back that lost revenue. Nvidia is going to be in a position to fulfill the $8 billion worth of orders that it had lined up for fiscal Q2, along with the $2.5 billion worth of shipments that it was unable to fulfill in the previous quarter. This could help Nvidia generate more revenue than what Wall Street is anticipating in the current fiscal year. Assuming that Nvidia manages to sustain the run rate of its H20 business in China in the second half of the fiscal year, it could generate $15 billion in revenue from that market. Analysts at equity research firm Bernstein estimate that Nvidia has the potential to generate incremental revenue of $15 billion to $20 billion in the current fiscal year once it gets the H20 export licenses. What's more, the company could generate an additional $0.40 to $0.50 per share in earnings based on the incremental revenue estimate. In the end, it can be concluded that Nvidia could deliver stronger-than-expected growth in fiscal 2026, which it can sustain in the long run as well thanks to the opportunities it is witnessing in other countries. Investors, therefore, have another reason to buy Nvidia stock right now as a potential acceleration in its revenue and earnings growth following this latest development could lead to more upside. 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Axios
15-07-2025
- Business
- Axios
Nvidia rallies, leading market, on resumed H20 AI chip exports to China
Shares in Nvidia rallied sharply Tuesday morning, helping boost the entire market, after the company said the U.S. government will again allow it to ship powerful AI chips to China. Why it matters: The export ban cost the company more than $10 billion in revenue, CEO Jensen Huang has said previously, so the reversal will come as a huge boon to its bottom line. By the numbers: Shares in Nvidia rose more than 5% in pre-market trading on Tuesday. Given Nvidia's outsized importance across financial markets in recent years, that rally gave stocks a broad tailwind, with Nasdaq futures 0.6% higher. Last week, Nvidia became the world's first $4 trillion company. Since the market bottom in early April, the stock has dramatically outperformed. What they're saying: The company, in a blog post published Monday, said "NVIDIA is filing applications to sell the NVIDIA H20 GPU again. The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon."
Time of India
15-07-2025
- Business
- Time of India
Nvidia to resume H20 chip sales to China, CEO Jensen Huang says civil AI models should run on American tech stack
Jensen Huang-led chipmaker Nvidia has announced plans to resume sales of its H20 artificial intelligence accelerator to China. According to a Bloomberg report, the development comes after assurance from the US government that such shipments will be approved, a deviation from the Trump administration's previous stance. Nvidia has shared a blog post where the company revealed that CEO Jensen Huang met with President Trump and US policymakers last month, 'reaffirming NVIDIA's support for the Administration's effort to create jobs, strengthen domestic AI infrastructure and onshore manufacturing, and ensure that America leads in AI worldwide.' The chip maker further stated that it has filed 'applications to sell the NVIDIA H20 GPU again' adding 'The US government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon.' 'General-purpose, open-source research and foundation models are the backbone of AI innovation,' Huang explained to reporters in D.C. 'We believe that every civil model should run best on the U.S. technology stack, encouraging nations worldwide to choose America.' The restart of H20 chip sales is an important step for NVIDIA's business in China. U.S. export rules have blocked chip companies from selling high-end AI chips to China, so NVIDIA had to create special versions for the Chinese market. CNBC's Mad Money host Jim Cramer reacted to the news on X, calling it 'so huge' that it might boost Nasdaq futures. Following the news, Nasdaq-100 futures went up by 12.50 points to 23,048.00, and the Dow Jones gained 88.14 points to reach 44,459.65 today. The Bloomberg report quoted Vey-Sern Ling, managing director at Union Bancaire Privee, who said 'Nvidia resuming the sale of H20 to China is obviously positive. Not just for the company but also the AI semiconductor supply chain, as well as China tech platforms that are building AI capabilities. This is also a good development for US-China relations.' Additionally, Huang also announced a new, fully compliant NVIDIA RTX PRO GPU that 'is ideal for digital twin AI for smart factories and logistics.' How AI gets smart: Unlocking LLMs AI Masterclass for Students. Upskill Young Ones Today!– Join Now
