Nvidia stock surged 5% on news that the company will be able to restart selling H20 chips to China.
CEO Jensen Huang recently met with President Donald Trump to discuss AI the US’ AI dominance goals.
Morgan Stanley CIO Mike Wilson sees this as a highly bullish indicator for the broader AI sector.
The move: Nvidia stock jumped as much as 5% on Tuesday morning, rising to $172.39 a share.
After bottoming in April, the stock has regained momentum and is currently up more than 27% year-to-date.
The chart:
Why: The company said that the US government will clear it to start shipping its H20 chips to China again.
In a July 14 blog post, Nvidia announced that it had begun filing applications to resume selling the H20 GPU in China. “The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,” it added.
Nvidia CEO Jensen Huang recently met with policymakers in both the US and China, including President Donald Trump, to discuss the importance of supporting artificial intelligence infrastructure.
Secretary of Treasury Scott Bessent said in an interview on Tuesday morning that multiple Chinese firms are currently at work on similar chips, which could pose a threat to America’s AI dominance.
This decision is a stark contrast from the Trump administration’s previous position on Chinese trade relations. In April 2025, NVDA stock fell as the White House announced strict controls on selling AI-enabling chips to China.
What it means: Morgan Stanley CIO and chief US equity strategist Mike Wilson said he sees the development as a highly bullish indicator for the broader AI sector.
He said that the AI capital expenditure (capex) cycle has been significant for the market’s recovery, although it often doesn’t receive much attention. “This deal is just more fuel to that fire,” he said.
Wilson also noted that the new Chinese revenue would be a “huge, positive kick to margins” for Nvidia. Reports indicate that Chinese firms are already rushing to buy the Nvidia chip when H20 sales resume.
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