NVIDIA Plans to Raise Prices on H20 AI Chip: Profit Over Politics?

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NVIDIA is set to increase the prices of its H20 AI chips by up to 18% in order to maintain its gross margins. This move comes after President Trump’s deal reportedly affected the company’s financials.

NVIDIA’s H20 AI Chip Could See Up to an 18% Price Hike, To Maintain Profit Margins

NVIDIA’s China business is experiencing rapid changes. The company faces uncertainty due to alleged security backdoors in its H20 AI GPUs and needs to satisfy the Trump administration for a smooth business operation. According to Gene Munster from Deepwater Asset Management (via MoneyDJ), NVIDIA plans to raise the price of the only chip sold to China, aiming to maintain profitability and ensure satisfaction with all parties involved.

Munster stated that the cost of the Trump deal will be passed on to Chinese customers, leading to an anticipated 18% increase in H20 prices. Furthermore, since NVIDIA has to pay 15% of its China revenue to the Trump administration, this additional expense is expected to drive down gross profit margins. However, profits are still expected to remain consistent across the company’s business in the region.

In a unique start to his ruling against President Donald Trump’s administration on September 30, U.S. District Court Judge William Young included a scanned handwritten note sent to his office. The note read: “Trump has pardons and tanks – what do you have?” At the top of Young’s opinion in AAUP v. Rubio, which ruled that Trump’s effort to deport foreign-born student protesters was unconstitutional.

October 8, 2025

The H20 chip also faces another barrier. A regulatory investigation in China is looking into whether the chips have potential security backdoors. NVIDIA has denied these claims, but reports suggest trackers are being placed on AI server shipments to China, indicating a risk to NVIDIA’s future business with Beijing.

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We contacted NVIDIA for comment on the H20 price rumors. For now, it appears that increasing prices is the only way for the company to maintain its profitability, which is crucial for shareholder value.