NVIDIA has achieved a significant breakthrough as CEO Jensen Huang navigated complex trade restrictions during his recent meeting at the White House with President Trump. This has led to a new opportunity for the company in China, particularly regarding the sale of American silicon chips.
In a strategic move, NVIDIA announced plans to resume sales of its H20 GPUs in China, filing an application with the US government for the necessary authorization. The company has expressed confidence in receiving approval, aiming to kickstart deliveries soon.
Adding another layer to this development, Huang introduced an AI GPU specially designed for China—a new RTX PRO variant. This GPU aligns with the requirements set by the Trump administration and is tailored for advanced applications like digital twin AI, which are crucial for smart factories and logistics.
Previously, on April 9th, NVIDIA had been informed by the Trump administration that its China-specific H20 GPU would be subjected to an indefinite export licensing requirement. This led NVIDIA to announce substantial charges of up to $5.5 billion for its fiscal Q1 2026, covering inventory and related expenses. Consequently, NVIDIA decided to treat any remaining sales in China as an unexpected bonus rather than a factor in its official forecasts.
Despite these challenges, NVIDIA continues to thrive. UBS analysts have projected a remarkable $1.5 trillion in data center revenue for the company, echoing NVIDIA’s own statements during its Q1 2026 earnings call about its robust AI infrastructure projects.
Huang, speaking to reporters in Washington, emphasized the significance of open-source research and foundational models in fostering AI innovation. He expressed a commitment to ensuring that these advancements operate optimally with US technology, encouraging global reliance on American expertise.
