Nvidia reboots China sales

Nvidia is back on the offensive in China, dusting off its H20 AI chip and preparing to restart sales in a move that could unlock a previously frozen $15 billion revenue opportunity. The H20 was developed specifically for China after the US tightened export restrictions in late 2023, citing national security concerns.

The product got caught in the crossfire again this April during the height of the trade wars, forcing Nvidia to halt shipments, write down $5.5 billion in inventory, and walk away from billions in expected sales. Now, with trade tensions easing slightly, Nvidia says it filed for a fresh license with the US government and expects the green light soon.

To keep regulators happy, Nvidia has also built a new chip, the RTX Pro GPU, which is tailored for US export rules and geared toward AI applications like digital twins for smart factories and logistics. It's based on the company's RTX Pro 6000D design and will come in at a much lower price point than the H20, thanks to lighter specs and simpler manufacturing.

All of this comes as CEO Jensen Huang touches down in Beijing again for a supply chain expo. He's walking a tightrope, maintaining Nvidia's relevance in China while staying clear of US-blacklisted entities.

We remain optimistic holders of Nvidia, opportunities like this feed straight through to the bottom line.