Nvidia is set to apply for an export license for H20 chips, following U.S. government approval. The loss of H20 chips impacted Nvidia’s finances, resulting in a $2.5 billion sales hit in Q1. However, H20 GPU sales are expected to return to the Chinese market, boosting Nvidia’s revenue potential.

Nvidia’s Q2 earnings could see a significant turnaround with the resumption of H20 chip sales. The company anticipates a 50% year-over-year growth rate to $45 billion, with the potential for even higher growth if H20 sales resume. The return of H20 chips could propel Nvidia’s stock price higher and solidify its growth trajectory.

Despite Nvidia’s expensive valuation at 38 times forward earnings, it remains competitive compared to other tech peers. The company’s strong growth potential, especially with the return of H20 chips, could justify its current valuation in the long run. Investors may see significant returns if Nvidia maintains its growth momentum.

Read more at Nasdaq: Nvidia Just Got Incredible News About China That Could Cause The Stock to Skyrocket