In a significant shift, Nvidia has begun processing orders from Chinese clients for its advanced H200 processors, CEO Jensen Huang announced Tuesday. Speaking at the company's GTC conference in San Jose, Huang confirmed the move, stating, "We have received purchase orders, and we're in the process of restarting our manufacturing. Our supply chain is getting fired up." He indicated the situation had changed markedly in recent weeks.

The development follows a prolonged blockade. In April of last year, the Trump administration imposed export license requirements, abruptly cutting off a market that once contributed over 20% of Nvidia's data center revenue. The company took a $5.5 billion charge related to the restrictions. While a modified chip, the H20, was developed for China, a policy reversal in December allowed shipments of the more powerful H200, contingent on the U.S. government receiving a portion of sales.

Progress, however, stalled for months amid reported security reviews in both capitals. As recently as late February, CFO Colette Kress noted that while a "small number" of H200s had U.S. approval for China, they had generated no revenue. The new orders signal a breakthrough, though U.S. requirements—including shipment caps, third-party testing, and the government share of sales—remain complex hurdles.

Despite the China hiatus, Nvidia's growth has been staggering, with revenue up 73% last quarter. For the current period, the company projects 77% growth, still forecasting no contribution from Chinese data center sales. The resumed shipments, while a positive step, represent a cautious re-entry into a critical yet tightly regulated market.

Source: CNBC