Nvidia(US:NVDA) Hua Er Jie Jian Wen·2025-07-15 13:53Core Viewpoint - Nvidia has announced the resumption of H20 chip sales to China, positively impacting Chinese cloud service providers and the data center sector, leading to significant stock price increases in related companies [1][2][4]. Group 1: Nvidia's H20 Chip Sales - Nvidia's CEO Jensen Huang stated that the U.S. has approved the sale of H20 chips to China, which is expected to generate billions in revenue for Nvidia and boost the prospects of AI-related companies in China [4][6]. - Analysts from Citigroup and Jefferies believe that the resumption of H20 sales will have a positive impact on China's Internet Data Center (IDC) industry, with specific recommendations to buy Century Internet and GDS Holdings [5][6]. - Nvidia's potential recovery of $15 billion in data center revenue, previously at risk due to sales bans, could significantly enhance its earnings per share (EPS) [6][9]. Group 2: Market Reactions and Predictions - Following the announcement, Alibaba's stock surged nearly 7%, while Kingsoft Cloud and GDS Holdings saw increases of over 10%, contributing to a more than 2% rise in the Hang Seng Tech Index [2][4]. - Bernstein estimates that for every $10 billion in revenue restored in the Chinese market, Nvidia's EPS could increase by approximately $0.25, with a potential overall EPS increase of $0.40 to $0.50 if $15 billion to $20 billion in revenue is recovered by FY2026 [6][9]. - Nvidia's stock rose nearly 5% after the announcement, contributing to an increase in the Nasdaq index [6].