Nvidia Returns to China: H20 Chips Ship as US Eases Export Controls; RTX Pro GPUs Launch Simultaneously

TradingKey - On July 15 (Beijing time), NVIDIA founder and CEO Jensen Huang announced two key developments in an interview: the U.S. has approved the sale of H20 chips to China, allowing NVIDIA to resume H20 shipments to the Chinese market, and NVIDIA will launch the RTX Pro GPU.

On July 14 (local time), NVIDIA officially announced the resumption of H20 sales in China and the introduction of a new, fully compatible GPU tailored for the Chinese market.

On July 14, NVIDIA’s stock rose over 2% intraday but closed down 0.52% at $164.07 per share. Notably, NVIDIA had recently become the first company globally to reach a $4 trillion market cap.

(Source: TradingKey)

Due to the U.S. government's H20 chip export restrictions introduced in April, NVIDIA incurred a $4.5 billion charge in its first fiscal quarter as a result of excess H20 chip inventory. During the same period, H20 product sales reached $4.6 billion, and the company would have generated an additional $2.5 billion in revenue had it not been for the restrictions.

In the fiscal year ended January 26, NVIDIA reported that the Chinese market contributed $17 billion in revenue, accounting for 13% of the company’s total sales. NVIDIA CEO Jensen Huang has repeatedly emphasized that China is a key market for the company’s business growth.

Designed as a response to export limitations, the H20 chip may not meet the demands of trillion-parameter large model training. Still, its performance is approximately 15% higher than the 910B model, making it highly competitive in industry-specific vertical applications.

Notably, the H20’s relaunch coincides with NVIDIA’s introduction of the RTX Pro GPU for the Chinese market. This graphics card is particularly significant as it is engineered for computer graphics, digital twin technology, and AI, positioning it as an ideal solution for building digital twin AI systems in smart factories and logistics.