Nvidia gains after US clears H200 chip sales to Chinese firms, unlocking a major growth market for its AI technology.
Nvidia shares surged over 4% after the US government approved exports of its H200 AI chips to Chinese companies, including Alibaba. The move grants Nvidia access to China’s vast market, potentially driving significant revenue growth.
The approval follows efforts by the US and China to ease trade tensions, allowing Nvidia to expand its dominance in AI inference and physical AI applications. Shares had consolidated below $200 for months before breaking out.
The development suggests investors are beginning to model the impact of China’s market on Nvidia’s long-term growth, though the full potential remains unpriced.