- The US begins issuing licenses for H20 exports to China, shortly after the meeting between Jensen Huang and Donald Trump.
- Nvidia had warned of a possible cut of $5.500 billion to $8.000 billion; H20 brought in $4.600 billion in Q1, with China accounting for 12,5%.
- China demands proof of no backdoors; Nvidia denies backdoors and remote shutdown features.
- Other advanced AI chips remain restricted; details of licenses, customers, and shipment values have yet to be disclosed.
The United States has activated the granting of export licenses for the H20 chip bound for China, which will allow Nvidia to resume shipments to the Asian giant. This move by Department of Commerce comes shortly after the meeting between CEO Jensen Huang and Donald Trump in the White House, although the content of that conversation has not been disclosed.
El H20 was specifically designed to fit the export controls of advanced semiconductors established during the Biden administration. The sales disruption had been a significant blow to the company: there was talk of $4.500 billion in lost sales in a quarter, in addition to warnings of a potential cut of up to 8.000 billionOn the parquet floor, the lifting of barriers caused a rebound of more than 4% in the share price and new bullish forecasts from several firms.
H20's return to the Chinese market: what licensing entails
For now, Washington has not detailed how many licenses have been issued, nor to what Chinese customers chips cannot be sent nor the total value of shipments. In parallel, exports of other advanced AI chips Nvidia's remain limited with the stated aim of slowing developments in defense and artificial intelligence in Beijing.
The recent chronology has been especially volatile: the Trump administration banned H20 sales in April and the measure was reversed in JulyThis processor was adapted by Nvidia to meet the requirements of the controls in place under Biden, remaining the legally viable option for the Chinese market.
On the financial front, Nvidia went so far as to warn that the restrictions could lead to a $8.000 billion cut in the July quarter. It had previously estimated an impact of 5.500 million, a figure that was later adjusted based on the inventory reuse originally planned for H20.
With the new window for China, the H20 has already shown traction: at first quarter of 2025 gender 4.600 million in sales, and China contributed 12,5% of global revenue. However, Nvidia warns that leadership could suffer if it loses market share to local rivals such as Huawei Technologies.
The market has taken note of the regulatory shift: after the partial unblocking, shares rose more than 4% and several analysis houses raised forecasts, with scenarios that contemplate quarterly revenues close to 8.000 billion towards the end of 2026, linked to the normalization of the Chinese channel.
Security demands in China and Nvidia's response
El China Cyberspace Surveillance Agency summoned Nvidia on July 31 to clarify whether the H20 incorporates a hardware backdoor that enables functions such as remote shutdownIn the media sphere, the Yuyuan Tantian account (affiliated with the state-run CCTV network) questioned the H20 They would not be technically advanced or environmentally friendly., in addition to warning about potential cybersecurity risks.
Nvidia has flatly rejected that its products include “backdoors” or “kill switches”, insisting that There are no remote access or control mechanisms in these chips. The company did not immediately respond to requests for comment, but has publicly reiterated its position against integrating such capabilities.
In the same line of pressure, the People's Daily requested the company “convincing evidence” to clear the doubts of users and authorities in China and help recover the market confidence with respect to H20.
The debate goes beyond the technical level. Several security experts believe that resuming sales could strengthen military and technological capabilities in China. For its part, Nvidia maintains that further tightening the restrictions would only encourage the development of local alternatives and would accelerate the technological independence of the Asian country.
The recovery of H20 in the Chinese market This comes at a time when, despite restrictions, sales are showing clear signs of recovery, and the company is simultaneously facing security and trust challenges in Beijing. The evolution of this situation will determine the balance between regulatory restrictions and commercial opportunities for Nvidia in the second half of 2025.
