Nvidia Eyes Return to China Market After $8 Billion Setback

Nvidia is preparing to re-enter the Chinese market with its H20 chip, a move that could recover billions in lost revenue after facing strict U.S. export restrictions.

In a blog post released late Monday, Nvidia said it is seeking approval to resume sales of its H20 chip—a lower-spec version of its Hopper series tailored to comply with U.S. trade rules. The company disclosed it has received assurances from the U.S. government that licenses for the chip “will be granted,” opening the door for a return to the market.

This development comes just three months after Nvidia warned that tighter U.S. regulations would significantly impact its business in China. In April, the company took a $4.5 billion charge in its fiscal first quarter, largely due to excess inventory and canceled orders related to the H20 chip. It estimated $2.5 billion in lost revenue for that quarter alone and forecast an additional $8 billion shortfall in the current quarter.

The turnaround follows a series of high-level meetings between U.S. and Chinese officials earlier this month. While the U.S. Commerce Department has not commented, Nvidia is optimistic it can resume shipments soon.

The potential return to China comes as Nvidia bets big on artificial intelligence. CEO Jensen Huang said in a May interview that the global AI market could grow to $50 billion within a few years—a market China plays a critical role in.

If H20 sales resume, it could mark a major win for Nvidia’s efforts to navigate geopolitical headwinds without missing out on the AI boom.