The United States relaxed export restrictions on NVIDIA's H20 graphics processors designed for Chinese markets. This policy shift forms part of negotiations addressing Chinese limitations on rare earth magnet exports. NVIDIA faced severe inventory writeoffs worth billions after the Trump administration implemented licensing requirements during April 2025. Chief Executive Jensen Huang campaigned publicly for American technology deployment in China. The company recently filed applications to restart H20 sales after receiving government assurances.
Jefferies estimates NVIDIA holds between 600,000 and 900,000 H20 units while Chinese demand reaches 1.8 million processors. First quarter shipments totaled 300,000 units to China. Chinese companies favor NVIDIA products due to CUDA software advantages and limited domestic alternatives. The upcoming B30 series will launch during the fourth quarter with reduced memory specifications for export compliance. Jefferies increased Chinese artificial intelligence spending projections by 40 percent to $108 billion this year while expanding five-year estimates by 28 percent to $806 billion.
Jefferies estimates NVIDIA holds between 600,000 and 900,000 H20 units while Chinese demand reaches 1.8 million processors. First quarter shipments totaled 300,000 units to China. Chinese companies favor NVIDIA products due to CUDA software advantages and limited domestic alternatives. The upcoming B30 series will launch during the fourth quarter with reduced memory specifications for export compliance. Jefferies increased Chinese artificial intelligence spending projections by 40 percent to $108 billion this year while expanding five-year estimates by 28 percent to $806 billion.
