Nvidia's AI chip sales in China boost near-term outlook, but geopolitical risks cast doubts on long-term growth. Click to read more on NVDA's Hold rating.

(Reuters) -Nvidia has told its Chinese customers it has limited supplies of H20 chips, the most powerful AI chip it had been allowed to sell to China under U.S. export restrictions, and that it doesn't plan to restart production, The Information reported on Saturday.

At the Beijing Expo, Jensen Huang also announced plans for a new chip for Chinese clients that is designed for robotics and smart factories.

Nvidia plans to increase the supply of its H20 chips to China, aiming to strengthen its position in the lucrative Chinese technology market. This move follows the lifting of an export ban and comes as Nvidia navigates US-China trade tensions.

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Nvidia announced at China's International Supply Chain Expo that its H20 chips received US government approval to resume sales in the world's second-largest economy, marking a pivotal moment for the semiconductor giant's efforts to regain lost ground in a critical market.

Nvidia CEO Jensen Huang described artificial intelligence models from Chinese firms Deepseek, Alibaba and Tencent as "world class" and said AI was "revolutionising" supply chains, at an exhibition in Beijing on Wednesday.