Nvidia H20: Significant Price Hike to Protect Margins?

General news News Tech Tech News 08/19/2025

0 360 Views

TECH NEWS – Reports say Nvidia may raise the China-only H20 AI chip’s price by up to 18% to offset a 15% revenue-share deal with Washington.

According to Wccftech, Nvidia is considering an up to 18% price increase on H20 units sold in China to cushion gross margins. The claim cites commentary from Gene Munster (Deepwater Asset Management), summarized by Taiwan’s MoneyDJ. (Nvidia has not officially confirmed the move.)

Context: multiple outlets report that, under a controversial arrangement, Nvidia and AMD will remit 15% of certain China AI-chip revenues to the U.S. government; Donald Trump has publicly referenced the figure.

At the same time, China has opened a regulatory probe into alleged backdoors in H20-bound systems, while state media questioned the chips’ safety—allegations Nvidia denies. Coverage also notes scrutiny around potential tracking measures tied to export controls.

If enacted, the hike would first hit major Chinese buyers (cloud/internet firms), who typically pass through costs to end users; Nvidia could partially preserve profit dollars even as percentage margins dip.

Bottom line: China-market H20 pricing may rise (up to 18%) amid a 15% revenue share and ongoing geopolitical risk; the situation remains fluid.

Sources: Wccftech, MoneyDJ, Barron’s, Reuters, The Register

Angyal Anikó

Anikó, our news editor and communication manager, is more interested in the business side of the gaming industry. She worked at banks, and she has a vast knowledge of business life. Still, she likes puzzle and story-oriented games, like Sherlock Holmes: Crimes & Punishments, which is her favourite title. She also played The Sims 3, but after accidentally killing a whole sim family, swore not to play it again. (For our office address, email and phone number check out our IMPRESSUM)