Nvidia Reloads China — Jensen's Pitch: Let Me Sell The Good Stuff

As tensions linger between the U.S. and China, NVIDIA Corp. (NASDAQ:NVDA) is attempting to regain its foothold in the world's second-largest economy by pushing to deliver more advanced AI chips. 

What To Know: Nvidia CEO Jensen Huang said during a press briefing in Beijing on Wednesday that the company wants to offer more sophisticated chips to China, beyond its current offerings. 

He explained that the technology landscape is constantly evolving, and Nvidia expects to bring more advanced products to China over time, as regulations permit.

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"I hope to get more advanced chips into China than the H20," Huang said "And the reason for that is because technology is always moving on … today Hopper's terrific but some years from now we will have more and more and better and better technology, and I think it's sensible that whatever we're allowed to sell in China will continue to get better and better over time as well." 

The CEO's comments come after a ban on H20 chip exports was lifted and Nvidia announced that it will resume sales of these chips to China. 

The H20 is a specially designed, less advanced chip to comply with U.S. export rules that limit certain technologies from being sent to China.

The temporary ban on H20 sales earlier in the year hit Nvidia hard and resulted in a $4.5 billion charge for unsold H20 inventory and $2.5 billion in lost first-quarter revenue. 

The company projected an $8 billion hit for the second quarter as a consequence of the export restrictions.

Huang has balanced his support for initiatives to bring chip production back to the U.S. with appeals to soften restrictions on trade with China. 

He has argued that, with China's AI market potentially reaching $50 billion within a few years, the loss of the Chinese market would be a major setback for American tech firms. 

He also noted that if U.S. companies are shut out, Chinese competitors such as Huawei could dominate the local market.

"Export control are things that are outside of our control and they can be quite disruptive to our business. It is our job only to inform the governments of the nature and the unintended consequences of the policies that they make," Huang said during his current visit to Beijing.

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