US Approves Chinese Companies to Buy Nvidia Chips; NVDA Export Ban Lifted

A surprising policy reversal has emerged from the Trump-Xi Beijing summit: reports indicate the US has approved Chinese companies to purchase Nvidia chips with all export restrictions and trading bans lifted. For Nvidia, this represents the restoration of roughly 25% of its historical revenue base that was cut off during the prior trade tension period. Jensen Huang's presence in Beijing eating noodles on a sidewalk, as captured by media, symbolizes the thaw in US-China semiconductor commerce that markets interpreted as a bullish signal for AI capex continuity across both geographies.

The move is embedded in broader Trump administration messaging about stabilizing US-China ties. US Trade Representative Jamieson Greer stated that the US and China are "willing to continue trade truce" and anticipates China committing to billions in American agricultural purchases. While the chip restriction lift was not formally announced at the summit's conclusion, market participants and company executives are interpreting the policy shift as a done deal tied to the diplomatic reset.

For Nvidia, this unwinds a key headwind that had pressured margins and growth guidanceCompany-issued forecasts of future financial performance. over the past 18 months. The semiconductor ecosystem more broadly benefits: Broadcom, AMD, and memory-chip makers (MU, SK Hynix suppliers) stand to see elevated demand from Chinese AI data centers. Conversely, US chip designers lose some geopolitical leverage over China's AI development trajectory. Markets have rewarded the news with a broad rally in semiconductors and AI infrastructure names; NVDA moved higher on the announcement while the broader AI cohort followed suit.

Critics caution that policy reversals can flip quickly with geopolitical tensions, and that Chinese chips companies remain subject to oversight on sensitive military and intelligence applications. Additionally, some analysts question whether lifting restrictions meaningfully changes China's ability to source cutting-edge chips, given that finer-node constraints remain in place. The durability of this shift depends on sustained diplomatic stability between the two powers.