📈 Nvidia Stock Rebounds as U.S. Approves H20 GPU Sales in China
Nvidia (NASDAQ: NVDA), a leader in artificial intelligence (AI) chip production, has seen extraordinary growth—over 1,070% since January 2023—due to soaring demand for its GPUs and data center products. However, U.S. export restrictions under the Biden administration had slashed billions from Nvidia’s potential sales. Now, Nvidia stock investors are celebrating a major policy reversal by the Trump administration.
On July 14, Nvidia announced it filed applications to resume selling its export-compliant H20 GPUs to China. The Trump administration has signaled that licenses will be granted by the U.S. Commerce Department. This is a game-changing development for the chipmaker and its shareholders.
🇨🇳 Nvidia Stock Took a Hit from Past Export Bans
China has long been a critical market for Nvidia. In the fiscal year ending January 2022, the country accounted for 26% of Nvidia’s revenue. That number dropped to 13% by fiscal 2025 following a series of escalating restrictions:
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September 2022: Biden’s administration blocked sales of A100 and H100 GPUs to China. Nvidia created a modified version, the H800, to comply.
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October 2023: Exports of H800 were halted, forcing Nvidia to cancel billions in orders. The company responded with the H20 GPU.
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April 2025: Trump’s administration halted H20 GPU exports, resulting in a $4.5 billion charge and a projected $8 billion revenue loss in Q2.
CEO Jensen Huang has repeatedly criticized the restrictions, stating:
“The question is not whether China will have AI. It already does. The question is whether one of the world’s largest AI markets will run on American platforms.”
✅ Nvidia Stock Benefits from Policy Reversals and Global Expansion
The recent shift under the Trump administration has brought multiple wins for Nvidia:
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The Commerce Department will approve export licenses for H20 GPUs to China.
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The Biden-era AI Diffusion Rule—which restricted sales to allied nations like Israel, UAE, Singapore, and Saudi Arabia—was repealed.
According to the Commerce Department, the rule would have “stifled American innovation” and harmed diplomatic ties. With its repeal, Nvidia has already signed new partnerships to deliver AI infrastructure to sovereign projects in Saudi Arabia and the UAE.
This expanded total addressable market significantly strengthens Nvidia stock as the company regains access to global demand for AI chips.
💸 Wall Street Analysts Eye Higher Earnings for Nvidia Stock
Wall Street is likely to respond with upward revisions to Nvidia’s earnings estimates. Current forecasts show 41% annual earnings growth through January 2027, already supporting the stock’s valuation at 54x earnings.
With renewed access to China and allied markets, these figures could increase—making Nvidia stock even more attractive to investors. CFO Colette Kress emphasized that the China AI accelerator market could reach $50 billion, meaning Nvidia’s restored presence could be a major revenue driver.
🔚 Conclusion: Nvidia Stock Positioned for New Growth Era
The Trump administration’s decision to allow H20 GPU exports to China and revoke the AI Diffusion Rule has restored Nvidia’s growth trajectory. This policy shift reopens massive revenue streams and strengthens Nvidia’s position in the global AI race.
Investors looking for high-growth tech opportunities should closely watch Nvidia stock as it continues to capitalize on favorable policy, surging AI demand, and expanded global markets.
Stay updated on Nvidia stock and global AI policy shifts—only in top business magazine IMPAAKT.
