Nvidia’s H20 Chips Return, But Expectations Are Tempered
Nvidia is preparing to reintroduce its H20 AI chips to the Chinese market after a months-long export ban. While this development is considered a policy win for the U.S. chipmaker, experts believe it may not translate into a full market rebound.
In April, Nvidia’s exports to China were effectively halted due to tightened U.S. trade restrictions. However, a recent policy shift by the Trump administration has allowed the company to resume sales. Alongside this, Nvidia has launched a China-specific chip designed to fully comply with export rules.
Despite this positive turn, industry insiders warn that Nvidia may struggle to reclaim its former market share, which has diminished in its absence.
Analysts Project Ongoing Decline in Market Share
According to a report by Bernstein, Nvidia’s share of China’s AI chip market is expected to shrink to 54% by 2025, down from 66% in 2024. While logistical delays contributed to this decline, the primary driver appears to be the rapid rise of domestic AI chipmakers.