Jensen Huang says Nvidia has received orders from China and is 'restarting our manufacturing'

Nvidia is making strides to re-enter the Chinese market after a significant hiatus in sales, as CEO Jensen Huang announced that the company has begun receiving orders for its H200 processors from customers in China. Speaking at the GTC conference in San Jose, California, Huang revealed, "We have received purchase orders, and we're in the process of restarting our manufacturing. This is a new development compared to just a few weeks ago, and our supply chain is revving up." The shift comes after Nvidia faced extensive regulatory hurdles that had previously barred it from selling its chips in China. Under the Trump administration, the company was informed in April that it would need a license to export chips to China and several other nations. This led to a substantial financial impact, with Nvidia announcing a $5.5 billion charge linked to these export restrictions. Historically, China represented a crucial market for Nvidia, accounting for over 20% of its data center revenue. However, following the implementation of export controls, the company developed a less powerful chip, known as the H20, tailored for Chinese consumers. A change in policy in December allowed Nvidia to send the advanced H200 chip to China, contingent upon the U.S. receiving a 25% share of the sales. Despite these developments, progress had been slow; as recently as last month, Nvidia's CFO Colette Kress noted that only a limited number of H200 products had received U.S. approval for sale to China, yet no revenue had been realized from these transactions. Complications arose from heightened security scrutiny on both sides, despite Huang's efforts to advocate for the company's interests in Washington, D.C., and his earlier visit to China this year. Interestingly, even without tapping into the Chinese market, Nvidia reported an impressive 73% revenue growth in its latest quarter, marking the eleventh consecutive quarter of growth exceeding 55%. Looking ahead, the company is anticipating a 77% growth rate for the current quarter while factoring in no revenue from its Chinese operations in its forecasts. However, the U.S. licensing process remains challenging, featuring shipment limits, mandatory third-party testing, and the government’s share of sales. Watch as Nvidia sets ambitious goals, aiming for a $1 trillion revenue target by 2027 for its upcoming Blackwell and Vera Rubin products.