NVIDIA CFO: Has obtained export license for H20 to China, geopolitical issues are the final obstacle

According to Zhitong Finance APP, NVIDIA (NVDA.US) has stated that it has obtained the relevant licenses to export H20 chips to several core customers in China, but admitted that it still needs to address some geopolitical issues between the United States and China. "Yes, we have received the license approval and have obtained (chip export) licenses for several core customers in China. We hope to seize the opportunity to complete the relevant processes and effectively deliver the H20 architecture chips to these customers. The current situation is that there are still some geopolitical issues between the two governments that we need to push for resolution," said Colette Kress, Vice President and Chief Financial Officer of NVIDIA, at the Goldman Sachs Communacopia + Technology conference held on Monday. In July of this year, NVIDIA indicated that it expected to resume sales of H20 graphics processing units (GPUs) to Chinese customers, based on the U.S. government's commitment to grant the relevant export licenses. It is reported that NVIDIA CEO Jensen Huang stated at that time that the company would increase the supply of H20 chips that meet the requirements of the Chinese market in the coming months and plans to launch more advanced semiconductor products in the Chinese market. Additionally, it was reported that last month, NVIDIA agreed to pay 15% of its H20 chip sales in the Chinese market to the U.S. government in exchange for export licenses; at the same time, AMD (AMD.US) also agreed to pay a proportionate fee to the U.S. side based on its MI308 chip sales in China to obtain the corresponding export licenses. However, Wall Street analysts have differing views on the agreement reached between the Trump administration and these two companies. When asked about the delivery issues related to H20 chips to China at the conference, Kress stated, "Our Chinese customers want to ensure that the Chinese government can also smoothly recognize the import of H20 chips. However, we firmly believe that there is a great possibility for this matter to progress." Kress also pointed out that if the relevant chip sales are realized, it is expected to contribute up to $5 billion in revenue for the quarter. She stated, "It is currently difficult to determine how much revenue can be specifically realized in this quarter (through this business). We have previously mentioned that if those geopolitical issues can be properly resolved, this business has the potential to bring in $2 billion to $5 billion in revenue opportunities."