Nvidia gets H20 chip licenses for some customers in China, but geopolitical woes linger

[Nvidia World Headquarters]
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Nvidia (NASDAQ:NVDA [https://seekingalpha.com/symbol/NVDA]) said it has received licenses for several of its key customers in China for the H20 chip but noted that there are some geopolitical situations it needs to work out between the U.S. and China.

"Yes, we did receive a license approval and have received licenses for several of our key customers in China. And we do want that opportunity to complete that and actually ship the H20 architecture to them. Right now, there is still in this position right now, a little geopolitical situation that we need to work through between the two governments," said [https://seekingalpha.com/article/4820686-nvidia-corporation-nvda-presents-at-goldman-sachs-communicopia-technology-conference-2025] Nvidia's Vice President and CFO Colette Kress at the Goldman Sachs Communacopia + Technology Conference on Monday.

In July, Nvidia said it hoped to resume sales of its H20 graphics processing units, or GPUs, to Chinese clients, citing U.S. government assurances that export licenses would be granted. CEO Jensen Huang, reportedly, said [https://seekingalpha.com/news/4467757-nvidia-to-ramp-up-h20-chip-supply-bring-advanced-chips-to-china] the company would boost supply of Chinese-compliant H20 chips in the coming months and look to bring more advanced semiconductors to the country.

Last month, reportedly, Nvidia agreed [https://seekingalpha.com/news/4482960-nvidia-amd-to-pay-15-of-china-ai-chip-sales-to-the-us---report#hasComeFromMpArticle] to hand over 15% of revenue from the sale of its H20 chips in China to the U.S. government in exchange for export licenses, while Advanced Micro Devices (NASDAQ:AMD [https://seekingalpha.com/symbol/AMD]) agreed to give the same share for its MI308 chip sales in the Asian country. However, Wall Street analysts had mixed reactions [https://seekingalpha.com/news/4483232-nvidia-and-amds-china-ai-pay-to-play-makes-a-slippery-slope-bernstein] to this deal [https://seekingalpha.com/news/4483838-nvidia-amds-china-ai-chip-sales-deal-with-us-an-incremental-positive-says-bofa] between the Trump administration and the companies.

"Our customers in China do want to make sure that our China government is also very well received in terms of receiving the H20 to them. But we do believe there is a strong possibility that this will occur," said Kress at the conference on questions related to the shipping of H20 chips to China.

Kress noted that the potential sales could add revenue up to $5B in the quarter.

"It's still hard to determine how much within the quarter. We talked about it being about a $2 billion to $5 billion potential opportunity if we can get through that geopolitical statement," said Kress.

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