Nvidia Goes All-In: 300,000 AI Chips Ordered as China Sales Set to Explode

Nvidia just placed a jaw-dropping 300,000-unit AI chip order—betting big on China's reopening floodgates. The Silicon Valley heavyweight's playing chess while others play checkers.

Why it matters: This isn't just restocking inventory—it's a calculated power move. With China's AI sector hungry for advanced chips, Nvidia's positioning itself as the arms dealer of the AI gold rush.

The backstory: Remember when regulators slammed the brakes on China sales? Neither does Nvidia—the company's reportedly reworked its chips to bypass export controls. Innovation finds a way, even when bureaucrats don't.

Wall Street's take: Analysts are already salivating over the revenue potential. Because nothing gets financiers hotter than a company that successfully navigates geopolitical minefields—while charging premium prices for its shovels.

Bottom line: In the high-stakes poker game of AI dominance, Nvidia just went all-in. And if history's any guide, they'll probably rake in the chips—both literally and figuratively.

Key Takeaways

• Nvidia ordered 300,000 H20 chips from contract chipmaker TSMC, according to a report Monday.
• Sales of H20 are expected to resume in China as President Donald Trump seemed to recently reverse course on tighter restrictions imposed earlier this year.
• Nvidia's order adds to its existing stockpile of H20 chips and was driven by strong Chinese demand, the report said.

Nvidia (NVDA) ordered 300,000 chipsets from Taiwan Semiconductor Manufacturing Co. (TSM), as the chipmaker prepares to resume sales in China amid strong demand in the country, a Reuters report said.

The order is for Nvidia’s H20 chips, a less-powerful AI chip tailored to meet U.S. export restrictions. Sales of the H20 in China were effectively banned earlier this year when the Trump administration instituted licensing requirements, but President Donald Trump seemed to reverse course following a recent meeting with Nvidia CEO Jensen Huang. 

“The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,” the chipmaker said on July 14. 

Nvidia’s significant TSMC order adds to the company’s existing H20 stockpile of 600,000 to 700,000 chips, the report said. Sources familiar with the matter reportedly said strong Chinese demand for the chips led Nvidia to make the additional order. 

An Nvidia spokesperson declined to comment to Investopedia. TSMC did not immediately respond.

Shares of Nvidia were little changed shortly after the opening bell Tuesday but have increased in value by nearly a third in 2025.