Nvidia stock hits new highs on 300,000 H20 chip orders for China

The H20 chip, a limited version of Nvidia’s earlier Hopper H100 series, was designed to meet U.S. export rules for China, and while it still requires licenses, Nvidia remains optimistic about securing approvals soon

Nvidia shares hit a third consecutive record high on Tuesday, July 29, following reports that the company has placed a substantial new order for AI chips bound for China. This move comes after the U.S. government recently eased export restrictions, allowing Nvidia to resume sales of its China-specific H20 GPUs.

According to a Reuters report, Nvidia has ordered 300,000 H20 chipsets from Taiwan Semiconductor Manufacturing Co. (TSMC), its key production partner. This follows earlier shipments of 600,000 to 700,000 units, signalling Nvidia's confidence in continued demand within the Chinese market.

The H20 chip, a restricted variant of Nvidia’s earlier Hopper H100 series, was tailored to comply with U.S. export guidelines targeting advanced technology sales to China. Despite requiring additional export licenses, Nvidia is reportedly optimistic about receiving the necessary approvals soon.

Nvidia reportedly shipped around 1 million H20 chips in 2024, according to market research firm SemiAnalysis. The resumed shipments are expected to positively impact other parts of the AI server supply chain, including CPUs, memory, and cooling systems.

Despite briefly hitting an intraday high of $179.38, Nvidia stock closed down 0.7% at $175.51 on Tuesday. Still, the stock remains strong, appearing on multiple Investor’s Business Daily (IBD) lists, including the IBD 50 and Tech Leaders.

Wedbush Securities analyst Matt Bryson called the report a positive development, maintaining an “outperform” rating on Nvidia with a $175 price target, and citing broader supply chain benefits from the renewed chip activity.