Nvidia Surges 4% on Resumption of GPU Exports to China

Nvidia shares surged 4% to $170.70, outperforming the broader market, after receiving assurances from the Trump administration to resume exporting its H20 GPU to China. The company's renewed access to the Chinese market and sector rotation into AI infrastructure investments solidify Nvidia's position as the premier semiconductor manufacturer in the rapidly expanding AI space. Competitors Advanced Micro Devices jumped 6.4% while Intel declined 1.63%.

Nvidia Corporation (NVDA) shares surged 4% to $170.70 on July 2, 2025, outperforming the broader market following assurances from the Trump administration to resume exporting its H20 GPU to China. The company's renewed access to the Chinese market and sector rotation into AI infrastructure investments solidify Nvidia's position as the premier semiconductor manufacturer in the rapidly expanding AI space.

The decision, announced on July 15, 2025, comes after CEO Jensen Huang met with President Donald Trump and top Chinese officials. The H20 chip, designed to comply with U.S. export controls, was previously halted in April due to restrictions imposed by the Trump administration. The recent agreement, facilitated by a preliminary trade deal between the U.S. and China, aims to restore Nvidia's ability to fulfill orders previously written off as lost [1].

The resumption of H20 chip sales is expected to have significant financial implications for Nvidia. According to Bloomberg Intelligence, the reversal could help recover a substantial portion of the $15 billion in fiscal 2026 data center revenue previously at risk, including $4-5 billion originally expected in the second half of the year [1]. The decision also marks a strategic win for Nvidia, which has been advocating for the removal of export controls on its chips.

The impact on Nvidia's stock was immediate, with shares rising as much as 4.5% in pre-market U.S. trading. The positive reaction was mirrored in the Chinese market, with Alibaba's shares rising as much as 6% in Hong Kong and the Hang Seng Tech Index surging by as much as 2.2% [1].

The resumption of H20 chip sales also has broader implications for the AI semiconductor supply chain and Chinese tech platforms seeking to build AI capabilities. Companies like DeepSeek and Alibaba Group Holding Ltd., despite Huawei's semiconductor progress, are expected to benefit from the availability of Nvidia hardware [1].

The U.S. government's decision reflects the ongoing efforts to thaw relations between Washington and Beijing. The recent trade deal has seen both sides agreeing to approve exports of crucial technologies, including Nvidia's H20 chips and rare-earth minerals [2].

While the decision is a positive development for Nvidia and the AI semiconductor industry, it also highlights the complex nature of U.S.-China trade relations. The about-face on Nvidia's H20 chips marks a significant shift from the Trump administration's earlier stance on measures designed to limit Beijing's AI ambitions [1].

References:
[1] https://finance.yahoo.com/news/nvidia-resume-h20-ai-chip-064336947.html
[2] https://www.business-standard.com/world-news/nvidia-h20-chips-donald-trump-us-china-export-curbs-jensen-huang-125071500120_1.html