Nvidia’s (NVDA) planned resumption of H20 AI chip sales to China is tied to a U.S. rare earths trade deal, Commerce Secretary Lutnick said, citing the “magnets” agreement struck by President Trump to restart critical mineral shipments to U.S. manufacturers.
Nvidia has filed applications for U.S. export licences and expects approval soon, while Chinese companies scramble to reserve H20 GPUs. Shares of Nvidia jumped 4% in New York trading.
Market Overview:- US to license H20 AI chip exports as part of rare earths magnets deal
- Nvidia files for H20 licence; expects approval imminently
- AMD to resume MI308 chip shipments upon licence clearance
- Nvidia shares up 4%, AMD shares gain 7% on export news
- H20 chips’ software integration critical to global AI standard
- ByteDance and Tencent register on Nvidia’s approved buyer list
- Track U.S. licence approvals for H20 and MI308 AI chips
- Watch Jensen Huang’s media briefing at Beijing supply chain expo
- Monitor U.S. legislative responses on export controls
- Nvidia’s anticipated resumption of H20 AI chip sales to China opens up access to the world’s second-largest AI market, reviving a significant revenue stream and allowing the company to tap pent-up demand through pre-registered buyers like ByteDance and Tencent.
- The tie-in with the U.S. rare earths “magnets” deal demonstrates the effectiveness of linking high-tech exports to strategic supply chain diplomacy, supporting critical U.S. industries while facilitating American tech growth abroad.
- Shares of Nvidia and AMD jumped 4% and 7% respectively on the export news, reflecting renewed investor confidence that regulatory barriers can be navigated—even in sensitive sectors—when viewed as mutually beneficial for both governments and manufacturers.
- With H20 chip software integration critical to global AI standards, continued U.S. chip presence in China helps set the benchmark for next-generation AI architecture and maintains Nvidia’s influence over the direction of worldwide AI development.
- Jensen Huang’s proactive engagement at Beijing’s supply chain expo underscores Nvidia’s commitment to fostering constructive commercial ties, which could mitigate competitive threats from domestic Chinese chipmakers and expand the firm’s global ecosystem.
- The move reaffirms the importance of adaptive go-to-market strategies for U.S. tech companies in China, showing that nimble negotiation can unlock growth—even in the face of policy headwinds.
- The export approval process is still pending, and renewed scrutiny from U.S. legislators—especially around national security concerns and dealings with entities on export control lists—could spark last-minute obstacles or tighter restrictions, reducing deal momentum.
- Political risk remains high; any shift in Washington’s stance or new diplomatic flare-ups could disrupt licensing just as Chinese customers ramp reservations, leading to revenue volatility and supply uncertainty.
- Linking AI chip sales to a rare earths deal may set a precedent for transactional, deal-by-deal approval, adding complexity and unpredictability to U.S. tech companies’ China operations and strategy planning.
- The resumption of advanced GPU exports could trigger further investment and accelerated innovation by Chinese chipmakers, intensifying long-term competitive pressure and potentially undermining U.S. leadership in AI hardware.
- Continued U.S.–China tech tensions may force Nvidia and AMD to balance commercial opportunities with compliance overhead, operational risk, and evolving export-control frameworks, diverting focus from global product development and innovation.
- Future reports or legislative changes could still block shipments to select firms, inject ongoing uncertainty into revenue forecasts, and discourage deep integration between U.S. AI and China’s technology ecosystem.
Jensen Huang will address the media in Beijing, emphasizing China’s role as a “massive, dynamic” AI market and the need for American firms to maintain footholds amid competitive pressures from domestic chip producers.
The export reversal drew swift scrutiny from U.S. legislators, with bipartisan senators urging caution over national security. Their letters to Huang highlighted concerns about interactions with entities on restricted export lists.
