Nvidia Frankfurt-listed shares up 3.2%; company to resume sales of AI chip to China

Nvidia Frankfurt-listed shares up 3.2%; company to resume sales of AI chip to China

Nvidia's Frankfurt-listed shares surged by 3.2% on Tuesday, July 2, 2025, following the company's announcement that it would resume sales of its H20 AI chip to clients in China. The move comes after the U.S. government assured Nvidia that licenses would be granted, allowing the company to restart deliveries soon [1].

Nvidia's decision to resume sales of the H20 GPU, which was previously restricted, reflects a significant policy reversal. The chip, designed to comply with U.S. export controls, was halted in April. The U.S. government's assurance to grant licenses to Nvidia follows a series of meetings between Nvidia CEO Jensen Huang and U.S. President Donald Trump, as well as discussions with Chinese government and industry officials [2].

The stock market's reaction to the news was positive, with Nvidia's stock rising by 3.2%. This increase was accompanied by a similar rise in the shares of Advanced Micro Devices (AMD), Taiwan Semiconductor (TSM), and other semiconductor companies. The expected clearance of Nvidia's H20 chip sales is seen as beneficial for AMD's sales to China, as well as for other semiconductor manufacturers [2].

Nvidia's recent stock rally has been driven by sustained investor enthusiasm for generative artificial intelligence. The company's valuation has surged, with Nvidia becoming the first publicly listed company to cross the $4 trillion market cap threshold in early July. This significant milestone underscores the scale of investor confidence in Nvidia's transformation from a graphics hardware company to a core component of the modern AI ecosystem [3].

The resumption of H20 chip sales to China is a strategic move for Nvidia, which has been advocating for a reversal of export controls. The company believes that these restrictions have inhibited American tech leadership and resulted in a significant loss of market share in China. By resuming sales, Nvidia aims to maintain its position as a key supplier in the rapidly expanding AI chip market [1].

References:
[1] https://www.cnbc.com/2025/07/15/nvidia-says-us-government-will-allow-it-to-resume-h20-ai-chip-sales-to-china.html
[2] https://www.investors.com/news/technology/nvidia-trump-administration-resume-h20-ai-chip-sales-china/
[3] https://www.tradingview.com/news/financemagnates:76d1914c7094b:0-nvidia-becomes-world-s-most-valuable-company-first-to-hit-4-trillion-market-valuation/