Yigit Taha OZTURK 
Nvidia announced a $5.5 billion charge following new US restrictions on its H20 AI chip sales to China, signaling increasing pressure from geopolitics on the tech giant’s global growth.
US Requires Licenses For H20 Shipments
On April 9, the US government informed Nvidia that it must now obtain a license to export its H20 GPUs to China and several other countries. The news triggered a 6% drop in Nvidia’s stock during after-hours trading.
The H20 chip, developed in response to earlier export rules from 2022 and 2023, was meant to cater specifically to the China market. Despite these limits, it reportedly generated between $12 billion and $15 billion in revenue last year.
China Still Key Despite Decline
Although revenues have dropped, China remains Nvidia’s fourth-largest market after the US, Singapore, and Taiwan. According to its annual report, more than half of Nvidia’s total revenue still comes from US clients.
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While the H20 is based on the Hopper architecture, it lacks the bandwidth and interconnect speeds of the H100 and H200 models sold in Western markets. Nvidia is now pivoting to its new Blackwell chips.
More Export Controls Coming
Next month, the US plans to introduce new “AI diffusion rules” that could further restrict Nvidia‘s ability to sell high-performance AI chips globally. The company argues these limitations could weaken the US position in global tech competition.
With the H20 chip’s export license requirement extended indefinitely, Nvidia faces mounting uncertainty. As it shifts production and logistics outside of China, it must navigate both commercial competition and political scrutiny.
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