During the recent visit to Beijing, Nvidia founder and CEO Jensen Huang confirmed the possibility of resuming shipments of H20 computing accelerators to the Chinese market. This decision was made after receiving approval from the US authorities. However, it is expected that the process of restoring supplies to previous volumes will face difficulties and take a considerable time.
Huang identified the key problem as the physical destruction of a portion of H20 accelerators originally intended for China. After introducing export restrictions in April, the company took this measure when the prospects of lifting them in the foreseeable future seemed minimal. The write-off procedure resulted in significant losses estimated at $5 billion.
Therefore, restoring supplies requires obtaining new export licenses from the US government and completing the necessary process. According to the company’s head, this may take up to nine months, during which time a new round of development and sustained growth of the Nvidia stock price are expected.
During his speech, Huang praised the achievements of Chinese developers in artificial intelligence, noting that their large language models match global standards. He highlighted the role of China’s open-source AI as a catalyst for global progress, enabling various countries and industries to participate in the AI revolution, which drives demand for computing accelerators and directly affects the development and effectiveness of automated trading in financial markets.
Nvidia is not yet ready to determine definitively whether it will be necessary to resume full production of H20 accelerators beyond the remaining reserves. The main uncertainty is related to assessing the current residual demand from Chinese customers. It’s possible that during the period of restrictions, some consumers switched to competitors’ products.
After thoroughly analyzing of the current order volumes, the company plans to launch new batches of products only then. The potential avoidance of previously projected losses of about $5.5 billion indicates a significant volume of unrealized orders. However, their actual conversion into real shipments will depend on many factors, including the timing of licensing and the willingness of customers to wait.
Huang’s visit to Beijing and the subsequent authorization for the supply of H20 come amid a marked intensification of dialogue between the United States and China.
Before his trip, the head of Nvidia met with US President Donald Trump, informing him of the strategic purpose of the visit. According to reports, Huang received a supportive message. He also emphasized that the issue of lifting sanctions was not the subject of his lobbying during the meeting.
American officials have already outlined a potentially mutually beneficial agreement. It is reported that in exchange for Chinese companies’ access to cutting-edge American computing accelerators, the United States expects reduced restrictions or enhanced supply conditions for critically important rare earth metals from China. Such metal shortages hamper the development of various American industries.
The most significant development for Nvidia and the global tech landscape is the approval to resume shipments of H20 to China. However, its practical implementation requires overcoming serious logistical and manufacturing challenges caused by previous restrictions.
The global significance of all these processes underscores China’s recognition as a hub for developing advanced artificial intelligence, and the connection between these technologies and the development of automated trading. The final timing and volumes of deliveries will depend on the coordinated actions of regulators, Nvidia’s production capabilities, and verified demand in the Chinese market.