Nvidia Gains Trump Approval for H200 Chip Sales to China With 25% US Fee
Nvidia shares rose 2% in extended trading after former President Donald TRUMP announced the Biden administration will permit restricted AI chip sales to China. The H200 processors—six times more powerful than currently approved exports—will carry a 25% revenue surcharge payable to the U.S. Treasury.
Commerce Department officials are finalizing arrangements that WOULD extend similar terms to AMD and Intel. Market reaction suggests investors view this as a measured compromise between maintaining technological superiority and preserving access to China's $7 billion AI chip market.
Uncertainty lingers over whether Chinese firms will purchase the chips given escalating tech tensions. "When you're dealing with strategic technologies, every percentage point in market share becomes a geopolitical calculation," noted Bernstein analyst Stacy Rasgon.
