Nvidia Gains as Trump Approves H200 Chip Sales to China
Nvidia shares rose 1.72% after the TRUMP administration authorized exports of its H200 AI chips to China, marking a policy reversal from prior restrictions. The U.S. government will claim 25% of revenue from these sales, up from an initial 15%, reflecting heightened strategic stakes.
Critics argue the move risks accelerating China's AI and military capabilities, while Nvidia maintains strong demand for its Blackwell chips despite geopolitical constraints. The H200, though 18 months behind Blackwell, significantly outperforms the previously approved H20 chips.
Investor Optimism pushed Nvidia's after-hours trading up 2%, signaling confidence in renewed access to China's massive tech market. CEO Jensen Huang's strategic positioning continues to navigate complex U.S.-China tech tensions.