Nvidia Shares Rise After AI Chip Cleared for Sale in China

Nvidia's stock rose 4.4% to $171.30 after receiving assurances from the Trump administration to sell its H20 AI chip in China. The company still can't sell its most advanced chips to Chinese customers. Other semiconductor companies, including Advanced Micro Devices, Marvell Technology, and Broadcom, also saw their stocks rise. Nvidia's stock has gained 28% this year.

Nvidia Corporation's stock rose 4.4% to $171.30 on Tuesday, July 2, 2025, following assurances from the Trump administration that it can resume sales of its H20 AI chip in China. The company's shares surged in premarket trading after CEO Jensen Huang met with President Donald Trump, with Nvidia's stock gaining 28% this year.

The news was greeted positively by other semiconductor companies, including Advanced Micro Devices (AMD), Marvell Technology, and Broadcom, whose shares also rose. The tech-heavy Nasdaq futures surged following the announcement, with Chinese stocks reacting positively as well.

Nvidia's H20 GPU, which is less powerful than its newer models, had been tailored to meet prior export limits for the Chinese market. The company took a $4.5 billion charge in the fiscal first quarter of 2023 due to export curbs imposed by the Trump administration. The H20 chips were designed to comply with earlier China trade curbs from Washington, which were tightened in April to block H20 sales to China without a US permit.

The green light from Washington marks a significant win for Nvidia, as analysts had said the restrictions would send sales in China, a key market, down to "zero." The company said in a blog post late Monday that it had filed applications to sell the H20 GPU again, with the US government assuring Nvidia that licenses would be granted, and deliveries expected soon.

Separately, Nvidia announced a new RTX PRO AI chip that it said was "fully compliant" for the Chinese market. The White House did not immediately respond to a request for comment.

The US move comes after weeks of thawing relations between Washington and Beijing, guided by an opaque trade truce that's designed to see both sides approve exports of crucial technologies. The Commerce Department, which oversees US export controls on chips and the tools used to make them, did not immediately respond to a request for comment on whether the agency has already issued any H20 licenses.

The possibility that US officials will green-light Nvidia's H20 exports to China reopens a key sales channel for the US chipmaker. 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, and part of the $8 billion in unshipped 2Q orders.

Nvidia's stock has gained 28% this year, reaching a market value of $4 trillion last week, making it the first company to achieve this milestone. The company is now seeking discussions with Chinese leaders, including the commerce minister, with its central role in the global AI rollout likely on the agenda.

References:
[1] https://www.investopedia.com/nvidia-stock-jumps-as-chipmaker-plans-to-resume-sales-of-key-ai-chip-to-china-11772209
[2] https://finance.yahoo.com/m/55ce7d2e-f2c2-3670-a672-25384f61b1a9/nvidia-jumps-as-trump.html
[3] https://finance.yahoo.com/news/nvidia-resume-h20-ai-chip-064336947.html