Nvidia Stock Soars 5.06% on China Sales Resumption

Nvidia Corporation's stock price reached a new all-time high in premarket trading on Tuesday, July 15, 2025, hitting $172.38, up $8.31 or 5.06%. This surge was driven by positive investor reaction to the news that the U.S. government would allow the company to resume sales of its H20 AI chips to China. This development marks a significant reversal from the export restrictions imposed in April 2025, which had halted Nvidia’s H20 chip sales to the Chinese market. The breakthrough came following a strategic meeting between Nvidia CEO Jensen Huang and President Donald Trump, underscoring the critical intersection of AI technology leadership and geopolitical trade relations.

The resumption of H20 chip sales to China is a pivotal moment for Nvidia, which had been significantly impacted by U.S. export restrictions. The H20 chips, designed to comply with earlier export controls while serving Chinese market needs, became subject to licensing requirements that effectively halted their sales. Jensen Huang had previously stated that chip restrictions had already cut Nvidia’s China market share nearly in half, making this reversal particularly significant for the company’s global revenue prospects.

The policy shift follows a strategic meeting between Huang and President Trump, where the Nvidia CEO reaffirmed the company’s commitment to American job creation and technological leadership in AI. This development aligns with a broader preliminary trade framework agreed upon between Washington and Beijing, which allowed for the relaxing of certain export controls in exchange for eased restrictions on rare-earth materials. The timing suggests that Nvidia’s lobbying efforts and the broader geopolitical context have created an environment favorable to resuming technological trade with China.

Industry analysts view this as a surprise development that could serve as a fresh growth catalyst for Nvidia in the coming quarters. Nvidia’s premarket surge to $172.38 represents a dramatic 5.06% increase from the previous close of $164.07, demonstrating strong investor confidence in the company’s renewed China prospects. The stock had closed down -0.85% (-0.52%) in regular trading on Monday, making the premarket rally particularly notable.

With a current market capitalization of $4.001 trillion, Nvidia maintains its position as one of the world’s most valuable companies, supported by exceptional financial metrics including a 51.69% profit margin and 115.46% return on equity. The company’s recent performance has been impressive across multiple timeframes, with year-to-date returns of +22.20% significantly outpacing the S&P 500’s +6.58% gain. More dramatically, Nvidia’s five-year return of +1,486.30% dwarfs the broader market’s +96.04% performance over the same period, reflecting the company’s successful positioning in the AI revolution.

Current analyst price targets range from $100 to $250, with an average target of $173.92, suggesting the stock is trading near fair value despite its remarkable run. The technical and fundamental outlook remains strong, with the company reporting trailing twelve-month revenue of $148.51 billion and net income of $76.77 billion. Forward-looking metrics show a PE ratio of 38.31 and expected earnings growth that supports the current valuation. The combination of resumed China sales, strong domestic AI demand, and the company’s technological leadership in GPU computing positions Nvidia for continued growth, though investors should monitor geopolitical developments that could impact future export policies.