US Government Approves NVDA H200 Chip Sales to 10 Chinese Companies

The US government approved Nvidia sales of H200 chips to Chinese buyers, a notable reversal in the tightening export controls that have defined US-China tech competition over the past two years. At least 10 Chinese companies received authorization, with the news emerging as NVIDIA CEO Jensen Huang attended a state banquet with President Trump and Xi Jinping in Beijing. The optics matter as much as the policy: Huang's presence at the Great Hall of the People alongside Elon Musk, Tim Cook, and other titans signals a shift in how Washington views AI commerce with Beijing.

The chip approval arrived amid broader Trump-Xi summit discussions on farm and oil trade expansion. While the headline focuses on semiconductors, the deeper narrative involves US semiconductor leadership and China's ability to build out AI infrastructure. NVIDIA shares surged 20% over seven days on a cumulative wave of positive sentiment, with the stock nearing a $6 trillion market value. The market has priced in sustained AI capex demand and Nvidia's ability to capture share across geographies. Goldman Sachs and other analysts had briefly flagged "chip sales to China" as a potential regulatory risk; yesterday's approval removes that overhang.

However, the approval does not signal an unrestricted sales environment. The H200 remains a restricted product under US export controls, and the number of approved buyers (10) is modest relative to the Chinese market's total demand. Cisco reported strong AI networking demand, suggesting the buildout encompasses switches and optics beyond just chips. The broader US-China relationship remains tense on Taiwan and trade, even as specific commerce in AI infrastructure finds a path forward.

Markets are debating whether this is a durable thaw or a tactical concession. Some traders worry that the approval is priced in and that any pullback in geopolitical relations could reverse it. Others argue that AI infrastructure is too valuable for both sides to weaponize fully, unlike consumer electronics or defense-grade semiconductors.