Key Points
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China is reportedly set to approve the import of Nvidia’s H200 AI chips after nearly a year of regulatory hurdles.
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Nvidia has over 2 million orders for H200 chips from Chinese customers, valued at approximately $54 billion.
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This development could significantly enhance Nvidia’s revenue forecast, with potential annual sales exceeding $50 billion if approved.
Chinese regulators have instructed major tech firms, including Alibaba, Tencent, and ByteDance, to submit orders for Nvidia’s H200 chips for approval, indicating a potential resolution to previous restrictions on high-tech imports. Despite a moratorium on the sale of advanced AI chips to China, lower-quality chip sales totaled $17.1 billion in 2024.
Nvidia CEO Jensen Huang stated that approvals could drive sales beyond $50 billion per year. Analysts project that taking into account a 25% export levy, Nvidia could see an incremental revenue boost of $40 billion from these orders, leading to an estimated earnings per share (EPS) increase to $8.29.
