Nvidia Wins China License for H20, $5 Billion Upside Possible

Nvidia NVDA says it now has licenses to supply its H20 chips to several key customers in China, but shipments are still caught up in geopolitics.

Yes, we did receive license approval and we do want that opportunity to complete that and actually ship the H20 architecture to them, CFO Colette Kress said Monday at the Goldman Sachs Communacopia + Technology Conference. Right now, there is still a little geopolitical situation we need to work through between the two governments.

Nvidia has been eager to restart sales of its Chinese-compliant H20 GPUs after U.S. restrictions curbed exports of its top chips. Reports last month suggested the company agreed to give 15% of H20 sales revenue in China back to the U.S. government in exchange for export licenses a deal that AMD also made for its MI308 chips.

Kress added that if approvals stick, the H20 could deliver a $2 billion to $5 billion revenue lift in a single quarter. CEO Jensen Huang has previously said Nvidia plans to ramp supply of H20 units and eventually roll out even more advanced semiconductors in China.