<div id="readability-page-1"><div><div>Nvidia Corporation's NVDA plans to ship its H20 artificial intelligence chips to China have received a significant boost, as the U.S. Commerce Department has reportedly granted the company licenses to resume exports, potentially preventing an $8 billion loss.<h2>Nvidia Wins Key Export Licenses For H20 Chips To China</h2>On Friday, Nvidia overcame a major hurdle after the U.S. granted it export licenses to resume shipments of its H20 graphics processing units (GPUs) to China, reported Reuters.This decision followed a reversal of the previous ban imposed in April due to U.S. export controls targeting China's AI and defense technology sectors. Nvidia had tailored its H20 chip specifically for the Chinese market to comply with these restrictions.Also Read: WeRide And Uber Expand Robotaxi Reach In Abu Dhabi<h2>Financial Impact: Nvidia's Losses And Potential Gains</h2>The decision is timely, as Nvidia had previously warned that the export restrictions could result in a loss of up to $8 billion in sales during the July quarter.The company had also revealed that it expected a charge of $5.5 billion due to the restrictions, though it was able to mitigate some of the impact by reusing materials.In May, Nvidia reported that the first-quarter charge related to these restrictions was $1 billion less than anticipated.Nvidia CEO Jensen Huang had also expressed concerns that the company's leadership position could be jeopardized without continued access to China, where rival companies like Huawei Technologies are aggressively targeting developers with locally produced chips.<h2>China’s Growing Local Chip Market Poses Challenges For Nvidia</h2>Despite the license approval, Nvidia faces growing competition from Chinese chipmakers such as Huawei, Cambricon and Hygon.Analysts at Bernstein have projected that Nvidia's market share in China's AI chip sector will decline, from 66% in 2024 to 54% in 2025, largely due to local companies' aggressive growth and the impact of U.S. sanctions.Still, analysts like Needham's N. Quinn Bolton remain optimistic. The analyst predicted strong demand for Nvidia's H20 and upcoming China-specific GPUs, forecasting significant future revenue in the Chinese data center market.<h2>Geopolitical Tensions Continue Over AI Chips</h2>The approval of Nvidia's export licenses is also set against the backdrop of continuing geopolitical tensions between the U.S. and China.The U.S. government has maintained strict controls over the export of cutting-edge semiconductor technologies, citing national security concerns related to China's AI and defense capabilities.This has sparked retaliatory actions from China, including trade barriers aimed at U.S. semiconductor firms.Price Action: On Friday, Nvidia's stock rose 1.09% in regular trading and inched up an additional 0.05% after hours, finishing at $182.83, according to Benzinga Pro.Benzinga's Edge Stock Rankings show NVDA’s positive price trend across short, medium and long-term periods. However, despite this solid growth, its overall value score remains comparatively low. Additional performance insights are available here.<ul> <li>Bill Gates Commits Majority Of $200 Billion Foundation Budget To Africa Over Next 20 Years Amid Trump’s Massive USAID Cuts</li> </ul>Photo Courtesy: Evolf on Shutterstock.com</div></div></div>

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Nvidia Corporation has received U.S. Commerce Department licenses to export its H20 AI chips to China, potentially averting an $8 billion loss. This follows a reversal of a previous ban due to export controls on AI and defense technology. Despite the approval, Nvidia faces increasing competition from local Chinese chipmakers, with analysts predicting a decline in its market share. The geopolitical landscape remains tense, with ongoing U.S. restrictions on semiconductor exports to China. Nvidia's stock rose 1.09% on the news, reflecting positive market sentiment.

- Nvidia Corporation has received U.S. export licenses to ship its H20 AI chips to China, potentially avoiding an $8 billion loss.  
- This decision follows a reversal of a previous ban and comes amid increasing competition from local Chinese chipmakers like Huawei.  
- Despite the license approval, analysts predict a decline in Nvidia's market share in China's AI chip sector due to local companies' growth and ongoing geopolitical tensions.

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Nvidia's $8 Billion Loss May Be Averted As US Approves H20 Chip Exports To China Amid Trad Tensions: Report