Nvidia (NVDA) has received assurance from U.S. authorities that it can resume the sale of its H20 AI chip in China. The green light came just days after CEO Jensen Huang met with President Donald Trump. The chip had previously been blocked in April under new U.S. export rules, resulting in a significant financial hit for the company.
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The news came while Huang was in Beijing, where he was meeting top Chinese leaders. Speaking to reporters there, he said, “I’m very happy,” hinting at the progress made during his trip.
H20 Shipments to Resume Soon
Nvidia confirmed that shipments will resume shortly after the U.S. Commerce Department granted licenses.
In addition to the H20 update, Nvidia also introduced a new AI chip for China. The model is designed for use in factory automation and logistics and is built on the company’s advanced Blackwell architecture.
NVDA Stock Movement
Nvidia has been doing well this year, with stock up 22% year-to-date. Also, the stock crossed the $4 trillion market cap mark on July 9, cementing its position as one of the most valuable companies in the world.
One of Nvidia’s few major challenges—limits on chip sales to China—now seems to be easing, which could help push the stock even higher. The latest assurance from U.S. officials on the H20 chip adds to investor optimism, especially as China remains a key growth market for Nvidia’s AI products.
Is Nvidia a Good Stock to Buy?
According to TipRanks, NVDA stock has received a Strong Buy consensus rating, with 36 Buys and three Holds in the last three months. The average Nvidia stock price target is $178.89, suggesting a potential upside of 9.03% from the current level.
