US Approves Nvidia H200 Chip Sales to 10 Chinese Firms; NVDA gains on China revenue reinstatement

In a significant policy reversal, the Biden administration approved Nvidia's sale of its H200 AI accelerator chips to 10 Chinese companies, effectively lifting export controls that had constrained the chipmaker's access to what was once its second-largest geographic revenue pool. Before sanctions tightened, China represented approximately 25% of Nvidia's overall revenue; the approval signals a potential thaw in US-China tech restrictions. NVDA rallied 4.4% on the news, with traders interpreting the move as a de-risking of geopolitical friction and a material upside surprise to near-term demand assumptions.

The timing is notable because it coincides with CEO Jensen Huang's visit to Beijing as part of Trump's two-day summit with Xi Jinping. Market observers flagged the optics of simultaneous diplomatic engagement and chip-export approval as a signal that the Trump administration is taking a pragmatic, transactional stance on China tech trade rather than maintaining the previous era's blanket restrictions. However, the approval was immediately complicated by geopolitical cross-currents: the Iran war escalation and heightened Middle East tensions have triggered broader macro volatility (bond selloff, inflationThe rate at which prices rise across an economy. fears, oil prices spiking), which pressured Nvidia alongside other risk assets by Friday close.

Skeptics raised concerns that the narrative is incomplete. While H200 approval is positive for Nvidia's near-term unit sales, it does not address the fundamental question of whether US-China détente on semiconductors is durable or merely transactional. Additionally, the broader semiconductor sector (AMD, AVGO, QCOM) faced significant headwinds Friday due to macro turmoil and North Korea tensions that spooked tech investors. Nvidia's 20% rally since May 5 had already priced in much of the capex enthusiasm; fresh upside may require earnings delivery or sustained geopolitical de-escalation.

Watch for clarification on Chinese companies' actual chip orders, quarterly revenue guidanceCompany-issued forecasts of future financial performance. from Nvidia's next earnings call (May 21), and any follow-up US policy clarifications on other chipmakers' China access.