Nvidia’s H20 GPUs coming back to China may be next part trade talks: Wedbush

Nvidia’s (NASDAQ:NVDA) H20 GPUs coming back to China could be the next leg in the U.S.-China trade talks, Wedbush Securities said on Wednesday.

“We believe next up as part of these China negotiations will be Nvidia chips sold into China (H20 ban) and chip export controls,” analysts at the firm said in a note to clients, referring to the fact that the two countries have agreed on a framework for a trade deal.

Nvidia disclosed in April that the Trump administration notified it would need a license to export its H20 GPUs and related products to China. Due to that, Nvidia took a charge of $4.5B in its most recent quarterly financial results and lost an additional $2.5B in H20 revenue during the period.

However, Wedbush analysts believed that the Trump administration is likely to loosen some of these export control curbs, as China is not that far behind the U.S. in artificial intelligence capabilities.

“With the AI Revolution hitting its next gear of growth it is important for China tech players they get access to Nvidia chips with the current H20 ban essentially handing a good portion of Nvidia’s business directly to Huawei on a silver platter,” the analysts added.

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