Nvidia approached a new record high after announcing plans to resume sales of its AI chips to China—one of its key markets—following assurances from the U.S. government that approval will be granted. The reversal marks a significant shift from the Trump administration’s earlier export restrictions tied to trade tensions with Beijing and boosted chip stocks broadly.
Nvidia (NVDA) shares surged over 4% in early trading Tuesday following the company’s announcement that it is applying to resume sales of its H20 GPUs in China after a U.S. ban had previously halted shipments, costing the company billions in lost revenue.
In a blog post late Monday, Nvidia confirmed it has filed the application and received assurances from the U.S. government that licenses will be granted. The company expressed hope to begin deliveries soon.
Nvidia stock closed at a record $164.92 last week and was trading above $171 in early Tuesday trading.
To comply with tightening U.S. export controls aimed at limiting China’s AI technology advancements for national security reasons, Nvidia has released lower-powered AI chips specifically for the Chinese market. The H20 GPUs, a less powerful iteration of the company’s previous Hopper generation chips, were first sold in China in 2024.
However, in April, the Trump administration abruptly banned sales of the H20 chips to China, causing Nvidia’s stock to plunge and resulting in $2.5 billion in lost sales for the company’s fiscal first quarter of 2026 (ended April 27). Nvidia projected an additional $8 billion loss for the second quarter.
CEO Jensen Huang called the ban “deeply painful” and stated Nvidia cannot produce another Hopper-based chip like the H20 for China under current restrictions. China remains a key market for Nvidia, representing about 13% of its 2025 revenue.
Huang recently met with President Trump at the White House before traveling to China for his second visit to Beijing this year, where he is scheduled to hold a media briefing on Wednesday.
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