Nvidia, the largest U.S. semiconductor company by market capitalization, is set to resume sales of its China-specific artificial intelligence chip, the H20, as the Trump administration looks to roll back restrictions on business with Beijing.
The company, which dominates the world’s AI chip market, was effectively banned from selling H20 chips to China in April due to the Trump administration’s move to tighten chip export licensing requirements on the country amid a global trade war.
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However, Nvidia CEO Jensen Huang revealed on Monday that trade with Beijing would likely pick up once again in the coming days after he met with President Donald Trump in Washington, D.C., last week.
“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,” a company blog post read.
“Today, I’m announcing that the U.S. government has approved for us filing licenses to start shipping H20s,” Huang added in remarks to reporters in China, noting that half of the world’s AI researchers are in China.
“It’s so innovative and dynamic here in China that it’s really important that American companies are able to compete and serve the market here in China,” he said.
Since the president took office in January, Trump and China have engaged in a brutal trade war centered on steep tariffs. In June, Trump announced that Beijing agreed to a trade deal, ending the dispute and resolving some of the economic imbalances that the president feared put U.S. workers and businesses at a disadvantage.
WHY NVIDIA WILL KEEP ON ROLLING
Nvidia, which has seen meteoric growth in recent years, this month became the first company to reach a $4 trillion valuation. The advanced H20 computer chips it develops are necessary to power tech companies’ data centers and are used in artificial intelligence.
As news rolled out this week that the Trump administration had relaxed restrictions on its chip sales, Nvidia stock jumped 4.7% to $171.78 in premarket trading Tuesday. Huang said in May that the decision to ban sales of the company’s H20 had a negative revenue impact of $10.5 billion.