NVIDIA's $35.56B Volume Leads Market as China Reentry and AI Rivalry Intensify

On August 1, 2025, NVIDIA (NVDA) fell 2.33% with a trading volume of $35.56 billion, the highest in the market. The company is reentering the Chinese market after U.S. government approval to resume sales of its H20 AI GPU, previously restricted by export controls. This development marks a pivotal shift in U.S.-China tech dynamics, as NVIDIA aims to expand its AI footprint in the region. To comply with local regulations, the firm launched a new RTX Pro GPU tailored for AI-driven manufacturing and logistics applications, signaling a strategic pivot to meet regulatory demands while capitalizing on China’s growing AI sector.

CEO Jensen Huang has been actively fostering U.S.-China AI collaboration, emphasizing open-source research and global innovation. His efforts align with NVIDIA’s broader goal to strengthen its presence in China, where demand for AI chips is surging. The company has reportedly secured large H20 chip orders with TSMC, indicating robust production ramp-up. Analysts estimate these China-bound chips could generate up to $15 billion in revenue, highlighting the financial scale of this market reentry. However, domestic competitors are challenging NVIDIA’s dominance, as Huawei recently unveiled an AI supercomputer with performance comparable to NVIDIA’s H100, raising questions about long-term market share.

Investor sentiment has been influenced by U.S. policy shifts, including a Trump administration AI strategy focused on deregulation and China engagement. This has bolstered optimism for NVIDIA’s growth trajectory, particularly as Trump’s administration pauses export controls to prioritize trade negotiations. Meanwhile, NVIDIA’s strategic ties to key policymakers, such as its CEO’s close relationship with Trump, position the firm to benefit from favorable regulatory environments. These dynamics underscore the interplay between geopolitical strategies and corporate expansion in the AI sector.

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