CEO Jensen Huang stated on Wednesday that Nvidia wants to ship more sophisticated chips to China than its current generation in an effort to boost sales in the second-largest economy in the world.
To boost sales in the second-largest economy in the world, Nvidia CEO Jensen Huang announced on Wednesday that the company would be shipping more sophisticated chips to China than its current lineup.
His comments come after Nvidia said on Monday that it will start selling its H20 AI chip again in China after a previous ban was lifted.
The H20 is a reduced-sized chip specifically designed for artificial intelligence tasks to comply with U.S. export regulatory standards.
“And the reason for that is because technology is always moving on … today Hopper’s terrific but some years from now we will have more and more and better and better technology, and I think it’s sensible that whatever we’re allowed to sell in China will continue to get better and better over time as well,” he said referencing Hopper, Nvidia’s chip architecture that the H20 is built on.
Nvidia at the centre of US-China tech tensions
Nvidia has been at the epicentre of growing tech and trade tensions between the United States and China, with several rounds of export restrictions preventing it from selling its most cutting-edge chips to China.
The business created compliant substitutes, such as the H20, in response.
But there is a financial cost to the curbs. Nvidia reported in May that its revenue for the most recent fiscal quarter would have increased by $2.5 billion if export restrictions had not been in place and that it had written down $4.5 billion in unsold H20 inventory.
Nvidia Q1 2025 financial report
Techpression reported in June that NVIDIA announced $44.1 billion in revenue for the first quarter that concluded on April 27, 2025, up 69 per cent from the same period last year and up 12 per cent from the prior quarter.
The U.S. government notified NVIDIA on April 9 that it requires a licence to export its H20 devices to the Chinese market.
As a result of the new regulation, NVIDIA incurred a $4.5 billion charge in the first quarter of fiscal 2026 related to excess inventory and purchase obligations for H20, as demand for the product declined.
In the first quarter of fiscal 2026, sales of H20 items were $4.6 billion before the new export license regulations were implemented.
The first quarter saw NVIDIA miss out on an additional $2.5 billion in H20 revenue.
