Nvidia share with a new record: Nvidia boss confirms the resumption of the sale of H20 chips in China

“I announce that the US government has given us permits to apply for licenses for the delivery of H20,” said Nvidia boss Jensen Huang to Chinese journalists. So Nvidia will start selling H20 chips on the Chinese market again, he said.

The decision follows an agreement in the ongoing trade dispute between China and the USA to reduce mutual restrictions. The exact content of the agreement is still unknown. Washington wanted the Chinese to loosen their export controls on rare earths that are important for industry. Beijing demanded that the United States to export important technology that depends on China.

Huang on China visit

Huang had previously talked to President Donald Trump in the US capital Washington about artificial intelligence, as Nvidia said. In Beijing, Huang has now met representatives of the government and industry on the same topic, it said.

Trump had occupied the arithmetic H20 chips with export restrictions since April. Already under its predecessor Joe Biden, the USA created hurdles for the sale of the most modern high -performance chips to China. Nvidia could therefore only deliver a slower version with the H20.

Before Trump’s restrictions, Nvidia H20 chips sold to China worth $ 4.5 billion. Nvidia emphasizes that it is technically impossible to continue to slim down the current chips in order to meet the export requirements. The bidet government had also justified its procedure with the concern that China’s military could gain access to efficient chips through Nvidia’s high-tech products.

Nvidia share for record course

Thanks to positive news about the China business, the shares in the world’s most valuable company continue their record hunting. The papers of the chip manufacturer Nvidia climbed heavily on Tuesday in Nasdaq trading and a new record high was set up at $ 171.49. At the moment, 4.26 percent are $ 171.06. The 4-billion-US dollar brand is also cracked again.

After months of export restrictions, Nvidia is allowed to sell his AI chips designed for China again in the People’s Republic. “I announce that the US government has given us permits to apply for licenses for the delivery of H20,” said Nvidia boss Jensen Huang.

So Nvidia will start selling H20 chips on the Chinese market again. The decision follows an agreement in the ongoing trade dispute between China and the USA to reduce mutual restrictions.

According to observers, the most important finding of the communication of Nvidia is that there is enormous demand for these H20 chips. This in turn indicates that the growth for companies that work in the AI infrastructure “will be higher in the long term”. Accordingly, it is expected that analysts now adapt their profit estimates for the chip manufacturer.

Daniel Niles, founder of Nile Investment Management, confidently commented. NVIDIA should be able to increase sales by around 20 percent in the next few years. In view of the growth rate of the chip manufacturer, its shares are “not rated so crazy”.

A common assessment measure is the price-profit ratio (KGV). This measures the ratio between the share price and expected profit per share. Nvidia has a KGV of almost 53. This is a very high value, but in the technology index NASDAQ 100 there is almost a dozen companies with a three-digit price-profit ratio.

The news from Nvidia also supported the European technology industry. “The fact that Nvidia will resume H20 chips to China is of course positive,” said Vey-Sern Ling, Managing Director of Private Bank Union Bancaire Prive. And not just for Nvidia itself, but also for the AI-HALLEDER-STIEG chain as well as for Chinese technology platforms that build up skills around artificial intelligence. This is also a good development for relationships between the USA and China.

In this respect, shares from the technology sector were one of the best industries across Europe on Tuesday. At the head of the Stoxx Europe 600 Technology, ASML attracted 2.6 percent to 704.60 euros. With this, they also had the edge in the moderately increasing eurozone feature index EUROSTOXX 50. In this country, Infineon won 1.16 percent to 37.79 euros.

After an interim slump in April, Nvidia shares are again over 22 percent of the year. At that time, US President Donald Trump had caused a violent correction with his customs plans.

With the expected course jump in regular trade on Tuesday, Nvidia is likely to expand its leading position in terms of market capitalization. The software manufacturer Microsoft is in second place with $ 3.7 trillion, followed by the computer group Apple with 3.2 trillion.

/AG/MIS/STK

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