Nvidia’s H20 chips return to China after a US export ban rollback, but analysts see market share losses from rising Chinese AI competition and tighter regulation.

Washington in July cleared Nvidia to resume sales of the H20 chips to China, reversing an effective April export ban. Beijing has since sought supporting documentation on potential risks, including vulnerabilities,

Nvidia placed orders for 300,000 H20 chipsets with contract manufacturer TSMC last week, two sources said, with one of them adding that strong Chinese demand had led the U.S. firm to change its mind about just relying on its existing stockpile.