Nvidia’s H200 Chips Set for Reapproval in China
The Chinese government is reportedly on the verge of approving the import of Nvidia’s H200 AI chips, reversing a previous ban that has lasted nearly a year. This decision could lead to substantial revenue for Nvidia, which holds orders for over 2 million units priced at approximately $27,000 each, totaling around $54 billion. A 25% export tax means Nvidia could potentially net over $40 billion from these orders alone.
In 2024, Nvidia’s revenue from China was approximately $17.1 billion, despite existing restrictions. CEO Jensen Huang has noted high demand, indicating that annual sales in China could exceed $50 billion if all goes according to plan. Currently, sales to China are not factored into Nvidia’s revenue forecasts, which estimate a $500 billion potential across AI-centric data center processors over the next six quarters.
Analysts project Nvidia’s overall revenue for the next year to reach $320 billion. With the additional $40 billion from the Chinese market, the company’s earnings per share could rise to $8.29, which at a price-to-earnings ratio of about 46, could drive its stock price to approximately $380, more than double its current value.
