Nvidia’s GPU Sales to China Resume
Nvidia has filed applications to resume selling its H20 GPUs in China, receiving assurances from the U.S. government for license approval. This comes after a series of export restrictions that previously cost the company billions, with losses estimated at $8 billion for Q2 2025 due to halted sales.
Impact of U.S. Export Restrictions
China accounted for 26% of Nvidia’s revenue in fiscal 2022, reduced to 22% in fiscal 2023, and projected to drop to 13% by fiscal 2025 as impacted by restrictions. The U.S. policies have seen Nvidia’s AI chip market share in China fall from 95% to around 50%.
Market Outlook
With the Trump administration’s new policy, analysts anticipate upward revisions to Nvidia’s earnings estimates, which are currently expected to grow at 41% annually through January 2027. This could further increase the attractiveness of Nvidia’s stock, currently valued at 54 times earnings.
