President Donald Trump announced late Monday that the U.S. will permit Nvidia to sell its H200 artificial intelligence chip to “approved customers” in China, with the added stipulation of a 25% cut on these sales. According to Trump, President Xi Jinping responded favorably to this arrangement, as conveyed through a post on Truth Social.
As a result of this development, Nvidia’s stock saw a modest increase, alongside gains for Advanced Micro Devices (AMD) and Intel (INTC), which are also authorized to engage in similar sales. Taiwan Semiconductor (TSM), a key manufacturer for both Nvidia and AMD, recorded slight gains as well.
This represents a significant victory for Nvidia CEO Jensen Huang, who has been advocating to enhance access to more advanced chips in the Chinese market. Huang has been particularly focused on securing approval for the company’s state-of-the-art Blackwell chips, although Trump made it clear that these chips, along with the upcoming Rubin GPUs, will not be available for export.
A previous attempt by the Trump administration to approve sales of less advanced, H20 chips specifically for China collapsed due to resistance from Beijing, which left the Chinese market with little interest. Trump’s mention of a positive response from Xi suggests a potential shift toward openness regarding the H200 AI chips.
While the planned 25% cut from sales is notable, actual implementation will require regulatory pathways, and export taxes are constitutionally prohibited in the U.S.—adding a layer of complexity to this plan.
### Stock Movements
In after-hours trading, Nvidia’s stock rose 2.2% to reach 189.58, following earlier gains of 1.7% during the regular session amidst news of the potential sale. A decisive break above the 50-day moving average could signal a favorable entry point for those observing market trends, especially as Nvidia seeks to solidify its presence.
AMD’s shares advanced by 1.9% in after-hours trading, poised to test their own 50-day line following a 1.4% increase to 221.11 earlier in the day. Meanwhile, Intel saw a slight uptick of 0.7% in after-hours trading, despite having fallen by 2.7% to 40.30 during regular hours.
Taiwan Semiconductor also experienced a 0.7% rise after hours, following a 2.4% increase during the regular trading session, where shares moved to 301.87. TSM’s stock is approaching a 310.12 double-bottom base buy point, making it a focal point for investors.
For those who keep a close watch on stock market movements, this evolving narrative around AI chip sales to China and the implications on major tech stocks is certainly worth exploring further.
