Nvidia’s efforts to capitalize on the Chinese market have had some setbacks in the past year or so. The company said a ban on its H20 AI chips in China “incurred a $4.5 billion charge” and the ongoing ban has had a lasting impact. However, the ban is finally being lifted thanks to approval from the U.S. government, which previously restricted the movement of H20 chips. As a result of the announcement, Nvidia’s stock has shot up by 4.47%.

CEO Jensen Huang has been promoting AI in Washington, D.C. and Beijing lately, seemingly in an effort to mend ties between the two regions. Nvidia asserts that it wants to emphasize “the benefits that AI will bring to business and society worldwide”. It’s clear that the U.S. government’s strategy backfired, as Chinese AI firms like Huawei have been able to compete despite restrictions.

Nvidia stock jumps 4.47% after announcing that H20 chips will start shipping to China

“I’m announcing that the U.S. government has approved for us filing licenses to start shipping H20s, so we start to sell H20s to the Chinese market and I’m looking forward to shipping H20s very soon, and so I’m very happy with that very very good news. The second news is that we’re also announcing a new GPU called RTX Pro. RTX Pro is very imporant because it’s designed for computer graphics and digital twins and AI”

Jensen Huang, Nvidia CEO and co-founder

The Economic Times reports that Nvidia stock has surged 4.47% in pre-market trading, with the stock price jumping by $7.33, up to $171.40. AMD, TSMC, and SMCI also rode the wave, ticking up ahead of Q2 earnings. This has since been spotted at $171.67, a rise of 4.63%.

Nvidia had expected its Q2 earnings to see continued impact from the H20 ban, projecting it would lose approximately $8 billion during the quarter. Now restrictions have been lifted, we could see a real turnaround in Q3 and Q4 this year; Nvidia’s Q2 financial results are expected to be published this August.

About the Author

Jack Goodall

At PC Guide, Jack is mostly responsible for reporting on hardware deals. He also specializes in monitors, TVs, and headsets and can be found putting his findings together in a review or best-of guide.