Nvidia shares soared Tuesday morning, rising more than 5% in premarket trading, after the chipmaker confirmed it will resume sales of its high-demand H20 AI processors to China. The approval follows months of halted exports that cost Nvidia billions in revenue.
Why Nvidia stock is rallying
On Monday, Nvidia said it submitted applications to resume H20 GPU shipments to China. The U.S. government signaled it will approve these licenses. These chips were designed specifically for China to comply with U.S. export restrictions.
“Nvidia is filing applications to sell the NVIDIA H20 GPU again. The U.S. government has assured NVIDIA that licenses will be granted,” the company said in a blog post.
This reversal opens the door to renewed sales in one of Nvidia’s largest markets. While deliveries may not impact current-quarter results, analysts expect a significant revenue boost in the second half of 2025.
Market cap momentum: $4 trillion and rising
The stock rally adds to a record-setting year for Nvidia. Just last week, the company became the first public firm to surpass a $4 trillion valuation. Investors remain bullish on Nvidia’s role in powering the AI revolution.
Since early April, Nvidia’s market cap has more than doubled. Demand for AI hardware continues to surge. Research firm Dell’Oro Group reports a 224% year-over-year increase in sales of GPUs, custom accelerators, and FPGAs. Nvidia controls 97% of the GPU accelerator market.
Reversing the H20 export ban
Back in April, the U.S. restricted Nvidia from shipping H20 chips to China. That decision led to:
- $4.5 billion in inventory write-downs
- $2.5 billion in lost projected sales
- Delays in supply chains and data center upgrades
With export licenses now expected, Nvidia aims to recover some of those losses. Reports suggest the company created a list of Chinese firms—such as ByteDance and Tencent—eligible to purchase the chips.
New RTX PRO GPU designed for China
Alongside the export update, Nvidia also revealed a new chip tailored for the Chinese market. The RTX PRO GPU will power smart factories and logistics systems using AI-driven digital twin technology. Nvidia confirmed the chip complies fully with export rules.
What happens next
- Export license approvals: Will determine the pace of resumed shipments
- Revenue impact: Likely to appear in Q3 or Q4 results
- Competitor response: AMD and Intel could roll out counter-offers
- Policy risks: Future export restrictions remain a possibility