NVIDIA shares as gain as Trump allows some A.I chips sale to China
Nvidia’s shares rose in US premarket trading after President Donald Trump approved limited sales of its H200 AI chips to certain Chinese customers, easing some concerns about access to the Chinese market.
Market reaction
Nvidia’s stock gained about 1.7% in US premarket trade following the announcement, reflecting investor optimism about resumed China-related revenues despite earlier export curbs on advanced AI processors. Rival chipmakers Advanced Micro Devices (AMD) and Intel also saw smaller premarket gains after the indication that similar rules would apply to other AI chip firms.
Policy decision details
Trump’s decision allows exports of Nvidia’s H200, described as a second‑tier AI chip line, to approved Chinese buyers but with a 25% fee imposed on such sales. The US Commerce Department is still finalizing implementation details, and the policy follows earlier restrictions that had completely blocked sales of high‑end AI chips to China.
Implications and remaining risks
Analysts at Morningstar see the move as reopening a potential path to meaningful future AI revenue from China, though they caution that US policy on chip exports has been inconsistent and could change again. Other analysts note that the impact may be limited if higher‑end Nvidia architectures like Blackwell and Rubin remain restricted and if Chinese firms instead accelerate adoption of domestically produced chips.
China’s response and competitive landscape
China has been pushing to expand domestic chip manufacturing to reduce reliance on Nvidia and other US suppliers, and there is no guarantee that H200 will be widely adopted versus local alternatives. Beijing has also previously instructed some companies to avoid US technology, adding uncertainty about how much demand will materialize under the new export permissions.
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Source – THE ECONOMIC TIMES