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Investing.com - Nvidia (NASDAQ:NVDA), currently trading near its 52-week high with an impressive 86% revenue growth over the last twelve months, is seeking to resume sales of its H20 GPUs to China after filing new applications with the U.S. government, according to a company blog post.
The chipmaker has received assurances from U.S. officials that licenses will be granted, potentially allowing Nvidia to begin deliveries soon. This development could unlock approximately $10 billion in near-term revenue opportunities from previously written-down inventory. According to InvestingPro analysis, Nvidia maintains excellent financial health with strong cash flows and moderate debt levels, positioning it well for this expansion.
When H20 restrictions were initially announced, Nvidia recorded $5.5 billion in write-downs, split evenly between purchase commitments and product inventory. The company had previously taken a $2.75 billion inventory charge related to these products.
China’s contribution to Nvidia’s revenue has declined from 20-25% five years ago to 10-15% more recently, according to Evercore ISI, which maintains an Outperform rating and $190 price target on the stock.
Separately, demand for Nvidia’s latest Blackwell solution remains strong, with high visibility for orders through 2025 and into 2026, while cloud service providers continue ramping up AI infrastructure buildouts globally with Nvidia as their preferred solution.
In other recent news, Nvidia has been making headlines with several significant developments. The company announced it is filing applications to sell its H20 GPU in China again, with assurances from the U.S. government that licenses will be granted. This move is part of Nvidia’s strategy to re-enter the Chinese market, which Citi estimates could represent a $50 billion opportunity. Meanwhile, Oppenheimer has raised its price target for Nvidia to $200, citing structural tailwinds from AI technologies as key growth drivers. Chinese tech companies ByteDance and Tencent (HK:0700) are also seeking Nvidia’s H20 chips, pending U.S. government approval, highlighting ongoing tensions in technology transfers between the U.S. and China.
In related news, Gorilla Technology Group reported a global pipeline of $5.6 billion and has become an official solutions provider for Nvidia. The company is involved in various projects, including smart education in Thailand and U.S. infrastructure initiatives. Lastly, Vertiv Holdings (NYSE:VRT) remains a key partner for Amazon (NASDAQ:AMZN) Web Services in developing liquid cooling solutions for Nvidia’s Blackwell platform, as noted by Evercore ISI, which reiterated an Outperform rating on Vertiv. These developments underscore Nvidia’s expanding role in AI and technology solutions across multiple sectors.
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