Trump Goes Soft On China As He Allows Nvidia To Sell High End AI Chips, Nvidia Stock Soar 5%

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New Delhi: Nvidia’s CEO Jensen Huang has announced that the company got the green light from the Trump administration to sell its advanced H20 computer chips, key for artificial intelligence, to China. This is a big turnaround—just a few months ago, the government had blocked these chips from China as part of its ongoing tech restrictions meant to limit China's access to the most powerful AI technology.

The approval follows intense lobbying by Nvidia, which warned that the ban would cost it an extra $5.5 billion and cut it off from a huge chunk of its business in China and Hong Kong (which brought in nearly $17 billion in sales last year). The U.S. move is also seen as a response to worries that companies outside the U.S. might fill the gap and that American companies like Nvidia could lose their competitive edge globally if they lost China as a customer.

Jensen Huang, now in Beijing to meet Chinese officials and attend a supply chain expo, said the company has already started the process to file for licenses and hopes to start shipping H20 chips soon. He stressed on Chinese state TV that China is highly innovative and that it’s important for American tech giants to be able to serve this market.

Ever since the export ban was announced in April, Nvidia designed the H20 chip specifically to fit within U.S. rules, but still had its shipments frozen. Now, with the approval, Nvidia’s stock shot up nearly 5 percent in early trading as investors cheered the return to the Chinese market.

This reopening is good news not just for Nvidia, but for many Chinese tech firms waiting for these chips—especially as rivals like Huawei try to catch up in AI hardware. However, the back-and-forth shows just how uncertain the tech business can be when global politics are involved, and both U.S. and Chinese companies are watching closely to see what happens next.