US Approves NVIDIA H200 Chip Sales to 10 Chinese Companies

The approval to sell NVIDIA H200 chips to Chinese buyers represents a major pivot in US export controls on advanced semiconductors. For months, the administration had restricted sales of cutting-edge AI chips to China under national security concerns. This reversal signals a recalibration of tech trade policy during the Trump-Xi summit, where the two leaders discussed expanding farm and oil commerce alongside technology partnerships. Jensen Huang's visible presence at the Beijing state banquet and his position within the broader CEO delegation underscores Silicon Valley's growing role in US-China relations.

The H200 approval to exactly 10 named entities suggests a carefully negotiated compromise: enough to signal openness and unlock Chinese demand for Nvidia's ecosystem, while maintaining some strategic restraint. Market participants interpret this as a green light for NVDA's AI infrastructure play and a validation of its dominance in the global chip race. The decision also reflects confidence that export controls can be calibrated without cutting off a major revenue stream that competitors would otherwise capture.

For equity investors, the move supports the narrative that AI capex will remain robust globally, despite previous fears of supply-chain fragmentation. NVDA stock rallied above $231 intraday and has now gained over 20% in seven days. The approval also lifts confidence in mega-cap tech peers like MSFT, GOOGL, and META, all of which depend on steady semiconductor supply. Chip hardware names like AVGO and SMCI are tracking the momentumThe empirical fact that winners keep winning over the medium term. as well, as the broader AI buildout gains momentum.

However, skeptics note the timing and limitations: the decision comes just as short-term momentumThe empirical fact that winners keep winning over the medium term. is extreme and the market is stretched on valuation. Some traders view the headline as sell-the-news material, especially if concrete deal volumes fail to materialize quickly. Others argue that a true policy reset would involve larger numbers and fewer restrictions, suggesting this is more gesture than substance.