Nvidia Shareholders Receive Strategic Updates Directly from CEO Jensen Huang
In a significant development, Nvidia (NVDA) has received approval from the U.S. government to resume exports of its H20 AI chips to China, following a meeting between Nvidia's CEO Jensen Huang and U.S. policymakers, including President Trump. This decision reverses earlier restrictions imposed in April, which significantly impacted Nvidia's revenues.
The H20 chip is a version of Nvidia's technology tailored for the Chinese market, designed to meet U.S. export controls while still being effective for AI applications. The reversal of the export restrictions is expected to boost Nvidia's revenue significantly in the second half of 2025, helping to offset the losses incurred during the first half due to the ban.
Analysts predict substantial revenue growth for Nvidia as the company resumes H20 chip sales. They estimate that Nvidia has the potential to generate incremental revenue of $15 billion to $20 billion in the current fiscal year once it gets the H20 export licenses. This could also ease global semiconductor supply chain tensions.
Before the export restrictions, Nvidia shipped $4.6 billion worth of H20 processors to China in fiscal Q1. The Chinese business was on track to generate $30 billion in annual revenue for Nvidia this year. However, due to the export controls, Nvidia expects to lose $8 billion in H20 revenue in the ongoing quarter.
Investors have another reason to buy Nvidia stock right now. Analysts are expecting $200 billion in revenue from Nvidia in the current fiscal year, a figure that could have been significantly higher if the company were allowed to uninterruptedly sell its H20 processors into the Chinese market. Nvidia has $8 billion worth of orders for fiscal Q2 that it was unable to fulfill due to export restrictions, which it may now be able to fulfill.
This development is crucial for Nvidia's financial recovery and growth in the second half of 2025, as well as for the broader semiconductor industry. Including the lost sales during the quarter, Nvidia's Chinese revenue would have been just over $7 billion. The opportunities Nvidia is witnessing in other countries could sustain its long-term growth.
Moreover, Nvidia could generate an additional $0.40 to $0.50 per share in earnings based on the incremental revenue estimate. The potential acceleration in revenue and earnings growth following this latest development could lead to more upside for investors. Overall, this decision is a positive step towards a more stable and prosperous future for Nvidia and the semiconductor industry.
The reversal of export restrictions on Nvidia's H20 AI chips could lead to a boost in technology revenues, with analysts predicting incremental revenue of $15 billion to $20 billion for Nvidia in the current fiscal year. This significant revenue growth might also be facilitated by the integration of artificial-intelligence in investing, as Nvidia's improved financial situation could lead to more upside for investors.
