Nvidia shares surged on news of developments in its AI chip business but ultimately closed down 1% on Friday. The volatility reflects investor excitement over artificial intelligence growth potential, tempered by profit-taking and market caution. Analysts continue to monitor Nvidia’s performance as AI-driven demand shapes the semiconductor sector and broader tech market trends.


Nvidia Jumps on AI Chip News But Closes Down 1% Friday 

Nvidia crushed wall street expectations on Wednesday, posting stronger-than-expected quarterly earnings and sales while issuing an optimistic revenue forecast for the fourth quarter. A strong forecast reignites investor confidence in semiconductor. And generative ai sector sent ai stocks soaring. Nvidia shares jumped over 5 percent in the after hours of the market. Asian markets also rose on Thursday driven by the rally in Asian chip stocks following the trend in U.S.


NVIDIA Surges on Record-Breaking Earnings Beat

NVIDIA reported a record third-quarter revenue of $57 billion, surpassing Wall Street estimates and lifting market sentiment. The company saw a 62% year-over-year sales growth driven by soaring demand for AI chips powering data centers and generative AI applications. NVIDIA forecasted strong revenue for the next quarter, calming recent investor jitters about an AI bubble.

NVIDIA Smashes Estimates, Boosts Stock on AI Chip Demand

The company posted net income of $31.9 billion (+65 per cent year-on-year) in the quarter, again exceeding forecasts. Such robust profit growth helped reassure markets that big AI-infrastructure investments may indeed generate returns, rather than just hype.

Did Nvidia’s earnings just help avert a market crash? Here's what numbers show

Google’s Gemini models increasingly run on Google’s own TPU chips instead of Nvidia GPUs, raising questions about whether the shift could reshape the AI hardware landscape. Here’s what’s actually true about Gemini’s performance and Google's reduced reliance on Nvidia.

‘Could change AI’: Google Gemini is performing strong even without Nvidia GPUs

Do you know which are the most valuable companies in 2025? Well, here is the list of the top 7 most valuable companies in the world by market capitalisation. The leading firms have valuations ranging from nearly $5 trillion to around $1.7 trillion.

Top 7 most valuable companies in 2025: Nvidia hits $5 trillion, Apple joins $4T club

Wall Street is on a record run as strong earnings from Amazon, Apple, and Nvidia lift investor sentiment. Amazon’s cloud growth, Apple’s upbeat forecast, and Nvidia’s new AI deals have fueled a major rally even as global markets cool off. Here’s why big tech profits are driving Wall Street’s momentum and what it means for investors worldwide.


Big tech earnings power wall street rally

NVIDIA: In 2025, NVIDIA continues to solidify its status as an unrivaled leader in AI computing and graphics technology. The company marked key milestones including crossing a $5 trillion valuation and launching breakthrough products like the GeForce RTX 50 Series based on the cutting-edge Blackwell architecture.


NVIDIA: A Giant Like No Other, Dominating AI and Graphics in 2025 

 With that we wrap this bulletin. But before we let you go, we leave you with some news in numbers.
Today, we look at nvidia's rise to 5 trillion dollars in market cap. We also look at the big deals that made nvidia the most valuable company in the world.
News and updates continue on the other side of a short break.
Stay tuned. You are watching, wion, world is one.


Nvidia Hits $5tn Market Cap | WORLD BUSINESS WATCH | WION

Nvidia has become the first company in history to reach a market value of USD 5 trillion, riding on the artificial intelligence boom that is reshaping technology, businesses, and markets across the globe. Nvidia shares opened up more than 3% on Wednesday, and its market value is now more than the GDP of every country on earth, except for the US and China, according to World Bank data. The stock has gained more than 50% this year and more than 1,500% over the last five years. Nvidia’s sharp rise highlights its transformation from a graphics-chip designer into the backbone of the booming AI industry. The steep rise has turned CEO Jensen Huang into one of Silicon Valley’s most influential figures and the company is now at the centre of the US-China tech rivalry.&nbsp;Since 2022—the year of ChatGPT launch—Nvidia’s shares have surged 12 times as the AI frenzy pushed the S&amp;P 500 to record highs, sparking both fear and debate over whether soaring tech valuations could trigger another market bubble.The firm reached the $5 trillion market capitalisation just three months after crossing $4 trillion. Moreover, the new valuation surpasses the total worth of the global cryptocurrency market and now equals nearly half of Europe’s benchmark Stoxx 600 index.&nbsp;Also Read: <a href="https://www.wionews.com/world/-will-push-them-back-into-caves-tails-between-their-legs-pak-minister-says-will-obliterate-afghan-taliban-1761741971619">Will push them back into caves…tails between their legs’: Pak minister says will ‘obliterate’ Afghan Taliban</a><h2>Rise follows record orders and supercomputing plans</h2>&nbsp;The Santa Clara-based company’s shares rose 3.5% after a series of announcements reinforced its leadership in the AI race. On Tuesday, Nvidia President and CEO Jensen Huang unveiled AI chip orders worth $500 billion and announced plans to build seven supercomputers for the US government.&nbsp;At current prices, Huang’s stake in Nvidia is worth about USD 177.3 billion, making him the world’s eighth-richest person, according to Forbes.&nbsp;Also Read: <a href="https://www.wionews.com/world/pak-defence-minister-khawaja-asif-admits-country-s-past-role-in-supporting-afghanistan-taliban-1761755033225">Pak Defence Minister Khawaja Asif admits country’s past role in supporting Afghanistan Taliban</a>&nbsp;Taiwan-born Huang, who was raised in the US from the age of nine, founded Nvidia in 1993. Under his leadership, the company’s H100 and Blackwell processors have become the core engines behind large-language models such as ChatGPT and Elon Musk’s xAI.The rally reflects investor confidence in sustained AI spending, though some warn that valuations may be running hot.Nvidia’s performance has a sweeping influence across global markets now.&nbsp;&nbsp;Moreover, US President Donald Trump is likely to discuss Nvidia’s Blackwell chip with Chinese President Xi Jinping on Thursday since the sale of the high-end chip has been a sticking point in ongoing tensions between the two countries, particularly amid Washington’s export controls on advanced semiconductors.

The Santa Clara-based company is at the centre of the global AI boom, and its market capitalisation as on Wednesday now exceeds the total valuation of the cryptocurrency market and is roughly half the size of Europe’s Stoxx 600 index.

Nvidia has become the first company in history to reach a market value of USD 5 trillion, riding on the artificial intelligence boom that is reshaping technology, businesses, and markets across the globe. Nvidia shares opened up more than 3% on Wednesday, and its market value is now more than the GDP of every country on earth, except for the US and China, according to World Bank data. The stock has gained more than 50% this year and more than 1,500% over the last five years. Nvidia’s sharp rise highlights its transformation from a graphics-chip designer into the backbone of the booming AI industry. The steep rise has turned CEO Jensen Huang into one of Silicon Valley’s most influential figures and the company is now at the centre of the US-China tech rivalry. Since 2022—the year of ChatGPT launch—Nvidia’s shares have surged 12 times as the AI frenzy pushed the S&P 500 to record highs, sparking both fear and debate over whether soaring tech valuations could trigger another market bubble. The firm reached the $5 trillion market capitalisation just three months after crossing $4 trillion. Moreover, the new valuation surpasses the total worth of the global cryptocurrency market and now equals nearly half of Europe’s benchmark Stoxx 600 index. Also Read: Will push them back into caves…tails between their legs’: Pak minister says will ‘obliterate’ Afghan Taliban Rise follows record orders and supercomputing plans The Santa Clara-based company’s shares rose 3.5% after a series of announcements reinforced its leadership in the AI race. On Tuesday, Nvidia President and CEO Jensen Huang unveiled AI chip orders worth $500 billion and announced plans to build seven supercomputers for the US government. At current prices, Huang’s stake in Nvidia is worth about USD 177.3 billion, making him the world’s eighth-richest person, according to Forbes. Also Read: Pak Defence Minister Khawaja Asif admits country’s past role in supporting Afghanistan Taliban Taiwan-born Huang, who was raised in the US from the age of nine, founded Nvidia in 1993. Under his leadership, the company’s H100 and Blackwell processors have become the core engines behind large-language models such as ChatGPT and Elon Musk’s xAI. The rally reflects investor confidence in sustained AI spending, though some warn that valuations may be running hot. Nvidia’s performance has a sweeping influence across global markets now. Moreover, US President Donald Trump is likely to discuss Nvidia’s Blackwell chip with Chinese President Xi Jinping on Thursday since the sale of the high-end chip has been a sticking point in ongoing tensions between the two countries, particularly amid Washington’s export controls on advanced semiconductors.

The Santa Clara-based company is at the centre of the global AI boom, and its market capitalisation now exceeds the total valuation of the cryptocurrency market and is roughly half the size of Europe’s Stoxx 600 index.

Riding on AI boom, Nvidia scripts history, becomes first firm to reach $5 trillion market value

NVIDIA inches closer to becoming the first $5 trillion company while apple topped $4 trillion in market value. The development makes apple one of the most valuable companies in the world alongside NVIDIA and microsoft which also surpassed $4 trillion.

Nvidia's Market Cap Close To $5 Trillion Mark: Apple, Microsoft Close By

NVIDIA and Qualcomm are now using AI to help design faster, smarter chips. With tools like ChipNeMo and on-device AI, they’re speeding up development and cutting errors, signalling a major shift in how processors are built for the AI age.

How AI is influencing chip design at NVIDIA and Qualcomm

Nvidia is investing up to $100 billion in OpenAI, in one of the biggest partnerships in AI history. The deal involves massive chip purchases, a non-voting stake for Nvidia, and plans to deploy at least 10 gigawatts of computing power — enough to power over 8 million U.S. homes.

This move strengthens Nvidia’s position as the dominant AI hardware provider and gives OpenAI the critical infrastructure to maintain its lead in artificial intelligence. But with antitrust concerns rising and competitors watching closely, this could reshape the entire tech landscape.

Nvidia’s $100b bet on OpenAI: AI supremacy begins

Nvidia said Monday it will invest up to $100 billion in OpenAI, building infrastructure for next-generation artificial intelligence.The strategic partnership aimed at deploying massive data center capacity unites generative AI star OpenAI with the leading maker of chips powering the technology."Compute infrastructure will be the basis for the economy of the future," OpenAI chief executive Sam Altman said in a joint release."We will utilize what we're building with NVIDIA to both create new AI breakthroughs and empower people and businesses with them at scale."The partnership will enable San Francisco-based OpenAI to build and deploy AI data centers with Nvidia systems, representing millions of sophisticated graphics processing units (GPUs), according to the companies.The first Nvidia systems are expected to be operating in the second half of next year.OpenAI and Nvidia added that they will work together to optimize how the companies' hardware and software complement each other.No financial details were provided beyond the possible magnitude of Nvidia's investment in OpenAI.Tech industry rivals Amazon, Google, Meta, Microsoft and Elon Musk's xAI have been pouring billions of dollars into artificial intelligence since the blockbuster launch of the first version of ChatGPT in late 2022.Nvidia has become a coveted source of high-performance GPUS tailored for generative AI.Chinese startup DeepSeek shook up the AI sector early this year with a model that delivers high performance using less costly chips.Silicon Valley-based Nvidia last week announced it would invest $5 billion in struggling chip rival Intel.The investment represents a significant commitment to Intel's turnaround efforts. Nvidia joined Japanese investment giant SoftBank and the US government in backing the once-dominant chipmaker, which has fallen behind in recent years after missing key technology shifts.Nvidia's GPUs, originally designed for gaming systems, have become the essential building blocks of artificial intelligence applications, with tech giants scrambling to secure them for their data centers and AI projects.OpenAI released a keenly awaited new generation of its hallmark ChatGPT last month, touting significant advancements in artificial intelligence capabilities as a global race over the technology accelerates.ChatGPT-5 was made available free to the more than 700 million who use the AI tool weekly, according to OpenAI.Disclaimer: This story has been published from a news agency feed with minimal edits for grammar and punctuation. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.&nbsp;

The partnership will enable San Francisco-based OpenAI to build and deploy AI data centers with Nvidia systems, representing millions of sophisticated graphics processing units (GPUs), according to the companies.

Nvidia said Monday it will invest up to $100 billion in OpenAI, building infrastructure for next-generation artificial intelligence. The strategic partnership aimed at deploying massive data center capacity unites generative AI star OpenAI with the leading maker of chips powering the technology. "Compute infrastructure will be the basis for the economy of the future," OpenAI chief executive Sam Altman said in a joint release. "We will utilize what we're building with NVIDIA to both create new AI breakthroughs and empower people and businesses with them at scale." The partnership will enable San Francisco-based OpenAI to build and deploy AI data centers with Nvidia systems, representing millions of sophisticated graphics processing units (GPUs), according to the companies. The first Nvidia systems are expected to be operating in the second half of next year. OpenAI and Nvidia added that they will work together to optimize how the companies' hardware and software complement each other. No financial details were provided beyond the possible magnitude of Nvidia's investment in OpenAI. Tech industry rivals Amazon, Google, Meta, Microsoft and Elon Musk's xAI have been pouring billions of dollars into artificial intelligence since the blockbuster launch of the first version of ChatGPT in late 2022. Nvidia has become a coveted source of high-performance GPUS tailored for generative AI. Chinese startup DeepSeek shook up the AI sector early this year with a model that delivers high performance using less costly chips. Silicon Valley-based Nvidia last week announced it would invest $5 billion in struggling chip rival Intel. The investment represents a significant commitment to Intel's turnaround efforts. Nvidia joined Japanese investment giant SoftBank and the US government in backing the once-dominant chipmaker, which has fallen behind in recent years after missing key technology shifts. Nvidia's GPUs, originally designed for gaming systems, have become the essential building blocks of artificial intelligence applications, with tech giants scrambling to secure them for their data centers and AI projects. OpenAI released a keenly awaited new generation of its hallmark ChatGPT last month, touting significant advancements in artificial intelligence capabilities as a global race over the technology accelerates. ChatGPT-5 was made available free to the more than 700 million who use the AI tool weekly, according to OpenAI. Disclaimer: This story has been published from a news agency feed with minimal edits for grammar and punctuation. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

The partnership will enable San Francisco-based OpenAI to build and deploy AI data centers with Nvidia systems, representing millions of sophisticated graphics processing units (GPUs), according to the companies.

Nvidia announces investment of up to $100 bn in OpenAI data centers

China on Monday (Sep 15) said that Nvidia violated the country’s anti-monopoly law with a high-profile deal in 2020, according to a preliminary investigation. Beijing added that it would continue its investigation into the US chip giant. The recent development, which comes amid trade tensions between Beijing and Washington, may complicate the ongoing talks between the US and China that started on Sunday in Madrid, Spain.The US chipmaker was found to be violating the antitrust regulations after it acquired networking gear maker Mellanox Technologies Ltd, as per the country’s market regulator, the State Administration for Market Regulation. Reportedly, Nvidia’s shares were down about 2 per cent in premarket trading.The SAMR opened an investigation into Nvidia after it acquired the Israeli technology company, which creates network solutions for data centres and servers. The $7 billion deal, which happened in 2020, was approved by China on the condition that Nvidia not discriminate against Chinese companies. However, SAMR said that the preliminary probe found that the US chip maker violated China’s anti-monopoly laws related to its acquisition and conditions, without specifying how Nvidia breached the country’s laws or what corrective measures it seeks from the firm.Earlier, the US imposed restrictions on Nvidia from selling its most advanced AI chips to Chinese firms, including the H100, over national security concerns. Nvidia redesigned its chips two times before it could sell them in the country in accordance with the US regulations.Monday’s ruling comes weeks after the US President Donald Trump’s administration later agreed to allow Nvidia and Advanced Micro Devices Inc. to sell some of their AI chips to Chinese companies. However, Beijing cautioned its local companies against Nvidia’s H20 accelerator, citing security concerns.Recently, China also said that it was launching an anti-dumping investigation into a certain type of US semiconductor firms, including Texas Instruments Inc. Its shares also fell around 2 per cent in pre-market trading.Meanwhile, Trump told reporters on Sunday that the talks in Madrid were “going fine”, but added that TikTok’s fate will be decided on Beijing’s actions. “We may let it die, or we may — I don’t know, it depends. Up to China,” the US president said.

The US chipmaker was found to be violating the antitrust regulations after it acquired networking gear maker Mellanox Technologies Ltd, according to the country’s market regulator.

China on Monday (Sep 15) said that Nvidia violated the country’s anti-monopoly law with a high-profile deal in 2020, according to a preliminary investigation. Beijing added that it would continue its investigation into the US chip giant. The recent development, which comes amid trade tensions between Beijing and Washington, may complicate the ongoing talks between the US and China that started on Sunday in Madrid, Spain. The US chipmaker was found to be violating the antitrust regulations after it acquired networking gear maker Mellanox Technologies Ltd, as per the country’s market regulator, the State Administration for Market Regulation. Reportedly, Nvidia’s shares were down about 2 per cent in premarket trading. The SAMR opened an investigation into Nvidia after it acquired the Israeli technology company, which creates network solutions for data centres and servers. The $7 billion deal, which happened in 2020, was approved by China on the condition that Nvidia not discriminate against Chinese companies. However, SAMR said that the preliminary probe found that the US chip maker violated China’s anti-monopoly laws related to its acquisition and conditions, without specifying how Nvidia breached the country’s laws or what corrective measures it seeks from the firm. Earlier, the US imposed restrictions on Nvidia from selling its most advanced AI chips to Chinese firms, including the H100, over national security concerns. Nvidia redesigned its chips two times before it could sell them in the country in accordance with the US regulations. Monday’s ruling comes weeks after the US President Donald Trump’s administration later agreed to allow Nvidia and Advanced Micro Devices Inc. to sell some of their AI chips to Chinese companies. However, Beijing cautioned its local companies against Nvidia’s H20 accelerator, citing security concerns. Recently, China also said that it was launching an anti-dumping investigation into a certain type of US semiconductor firms, including Texas Instruments Inc. Its shares also fell around 2 per cent in pre-market trading. Meanwhile, Trump told reporters on Sunday that the talks in Madrid were “going fine”, but added that TikTok’s fate will be decided on Beijing’s actions. “We may let it die, or we may — I don’t know, it depends. Up to China,” the US president said.

The US chipmaker was found to be violating the antitrust regulations after it acquired networking gear maker Mellanox Technologies Ltd, according to the country’s market regulator.

Did Nvidia violate anti-monopoly law in China? Here’s what Beijing’s market regulator revealed amid trade tensions with US

Nvidia CEO Jensen Huang has pushed back against fears that the artificial intelligence (AI) chip boom is losing momentum. Speaking after the company’s second-quarter results, Huang said AI spending will expand into a multi-trillion-dollar market within the next five years.&nbsp;Despite this upbeat message, Nvidia shares slipped 1.56 per cent in premarket trading on Thursday as the company’s third-quarter forecast fell short of some investor expectations. The cautious outlook excluded any potential revenue from China, highlighting the ongoing uncertainty caused by trade restrictions between Washington and Beijing.&nbsp;<h2>‘A new industrial revolution has started’</h2>He told investors that AI is creating opportunities on a historic scale. “A new industrial revolution has started. The AI race is on,” he said, projecting $3 trillion to $4 trillion in AI infrastructure spending by the end of the decade.&nbsp;He explained that data centres alone are expected to spend around $600 billion in 2025, with major buyers including Microsoft and Amazon. For a single $60 billion data centre project, Huang said Nvidia could supply as much as $35 billion worth of chips and systems.&nbsp;“The buzz is: everything sold out,” Huang said, pointing to strong demand for its high-end Blackwell chips and even older Hopper processors, which remain in high demand.&nbsp;<h2>Balancing investor caution and AI optimism</h2>While Huang’s forecast highlights Nvidia’s confidence, some investors remain wary. AI-related stocks have shown signs of slowing momentum, with OpenAI CEO Sam Altman recently warning that investors may be “overexcited” about AI.&nbsp;Matt Orton, head of advisory solutions at Raymond James, said Nvidia still has durability in its growth story: “The mega caps are the ones propelling a lot of the capital spending that Nvidia is benefiting from. You’re not seeing any slowdown in Nvidia’s results.”&nbsp;&nbsp;Portfolio manager Thomas Martin at Globalt Investments echoed this, noting that Nvidia’s order books for 2026 Blackwell chips are already full, showing how early the AI expansion still is.&nbsp;<h2>China's question remains unanswered</h2>Nvidia has not shipped its H20 reduced-capability chips to China in the latest quarter, even though a non-Chinese customer purchased $650 million worth of the same product. The lack of clarity over U.S.-China export rules continues to cast uncertainty on Nvidia’s growth potential in one of the world’s largest tech markets.&nbsp;The company’s cautious Q3 revenue forecast has therefore raised some concerns, though analysts note that Nvidia’s dominance in AI chips gives it significant room to expand outside China.Nvidia has outperformed much of the broader market this year, even surpassing Apple in quarterly net income. With AI infrastructure spending accelerating, Huang believes the company is still in the “early stages” of a long-term cycle.

Nvidia CEO Jensen Huang says AI spending will hit multi-trillion dollars within five years, calling it a new industrial revolution. Despite strong demand for its chips, Nvidia shares dipped as Q3 outlook excluded china due to trade restrictions.

Nvidia CEO Jensen Huang has pushed back against fears that the artificial intelligence (AI) chip boom is losing momentum. Speaking after the company’s second-quarter results, Huang said AI spending will expand into a multi-trillion-dollar market within the next five years. Despite this upbeat message, Nvidia shares slipped 1.56 per cent in premarket trading on Thursday as the company’s third-quarter forecast fell short of some investor expectations. The cautious outlook excluded any potential revenue from China, highlighting the ongoing uncertainty caused by trade restrictions between Washington and Beijing. ‘A new industrial revolution has started’ He told investors that AI is creating opportunities on a historic scale. “A new industrial revolution has started. The AI race is on,” he said, projecting $3 trillion to $4 trillion in AI infrastructure spending by the end of the decade. He explained that data centres alone are expected to spend around $600 billion in 2025, with major buyers including Microsoft and Amazon. For a single $60 billion data centre project, Huang said Nvidia could supply as much as $35 billion worth of chips and systems. “The buzz is: everything sold out,” Huang said, pointing to strong demand for its high-end Blackwell chips and even older Hopper processors, which remain in high demand. Balancing investor caution and AI optimism While Huang’s forecast highlights Nvidia’s confidence, some investors remain wary. AI-related stocks have shown signs of slowing momentum, with OpenAI CEO Sam Altman recently warning that investors may be “overexcited” about AI. Matt Orton, head of advisory solutions at Raymond James, said Nvidia still has durability in its growth story: “The mega caps are the ones propelling a lot of the capital spending that Nvidia is benefiting from. You’re not seeing any slowdown in Nvidia’s results.” Portfolio manager Thomas Martin at Globalt Investments echoed this, noting that Nvidia’s order books for 2026 Blackwell chips are already full, showing how early the AI expansion still is. China's question remains unanswered Nvidia has not shipped its H20 reduced-capability chips to China in the latest quarter, even though a non-Chinese customer purchased $650 million worth of the same product. The lack of clarity over U.S.-China export rules continues to cast uncertainty on Nvidia’s growth potential in one of the world’s largest tech markets. The company’s cautious Q3 revenue forecast has therefore raised some concerns, though analysts note that Nvidia’s dominance in AI chips gives it significant room to expand outside China.Nvidia has outperformed much of the broader market this year, even surpassing Apple in quarterly net income. With AI infrastructure spending accelerating, Huang believes the company is still in the “early stages” of a long-term cycle.

Nvidia CEO Jensen Huang says AI spending will hit multi-trillion dollars within five years, calling it a new industrial revolution. Despite strong demand for its chips, Nvidia shares dipped as Q3 outlook excluded china due to trade restrictions.

Nvidia CEO says AI boom is just starting, predicts multi-trillion dollar growth

Nvidia’s $46.7 billion revenue and strong AI chip growth highlight massive demand for artificial intelligence, boosting Palantir’s stock 1,760 per cent and supporting rapid adoption of Palantir’s AI platform. Read more below.

How Nvidia’s $46.7 billion boost helped Palantir stock

&nbsp;Nvidia delivered a blockbuster Q2 with $46.7 billion in revenue and net profit of $26.4 billion, both up sharply on a year earlier. Demand for its AI chips, especially the Blackwell line, drove growth. Yet, the company still shipped no H20 chips to China, as negotiations and regulations remain unresolved.&nbsp;Powerful numbers, powered by AI chips&nbsp;In Q2, Nvidia’s revenue rose 56 per cent year-on-year, with net profit climbing 59 per cent . Data centre sales soared to $41.1 billion, powered in large part by the Blackwell platform with $27 billion directly attributed to Blackwell sales.&nbsp;Nvidia also approved a massive $60 billion share buyback, reflecting strong cash flow and investor focus on shareholder returns.&nbsp;<h2>China remains off-limits for H20 chips</h2>&nbsp;Despite U.S. approval under a 15 per cent revenue-sharing deal, Nvidia shipped zero H20 chips to China in Q2. CFO Collette Kress explained that the company is still awaiting full regulatory clarity. Meanwhile, $650 million worth of H20 chips were sold outside China.This absence likely shaved off $4-$8 billion in Q2 revenue potential. Optimistic forecast, cautious outlookFor Q3, Nvidia projects $54 billion in revenue ±2 per cent, ahead of analyst expectations (~$53.14 billion). However, shares fell by 3-5 per cent in after-hours trading, as investors eyed the China uncertainty and signs of data-centre momentum occasionally cooling.Despite this, CEO Jensen Huang remains bullish. He describes a “new industrial revolution” and expects $3-$4 trillion in AI infrastructure spending by 2030.

Nvidia delivered a blockbuster Q2 with $46.7 billion in revenue and net profit of $26.4 billion, both up sharply on a year earlier. Demand for its AI chips, especially the Blackwell line, drove growth. 

Nvidia delivered a blockbuster Q2 with $46.7 billion in revenue and net profit of $26.4 billion, both up sharply on a year earlier. Demand for its AI chips, especially the Blackwell line, drove growth. Yet, the company still shipped no H20 chips to China, as negotiations and regulations remain unresolved. Powerful numbers, powered by AI chips In Q2, Nvidia’s revenue rose 56 per cent year-on-year, with net profit climbing 59 per cent . Data centre sales soared to $41.1 billion, powered in large part by the Blackwell platform with $27 billion directly attributed to Blackwell sales. Nvidia also approved a massive $60 billion share buyback, reflecting strong cash flow and investor focus on shareholder returns. China remains off-limits for H20 chips Despite U.S. approval under a 15 per cent revenue-sharing deal, Nvidia shipped zero H20 chips to China in Q2. CFO Collette Kress explained that the company is still awaiting full regulatory clarity. Meanwhile, $650 million worth of H20 chips were sold outside China. This absence likely shaved off $4-$8 billion in Q2 revenue potential. Optimistic forecast, cautious outlook For Q3, Nvidia projects $54 billion in revenue ±2 per cent, ahead of analyst expectations (~$53.14 billion). However, shares fell by 3-5 per cent in after-hours trading, as investors eyed the China uncertainty and signs of data-centre momentum occasionally cooling. Despite this, CEO Jensen Huang remains bullish. He describes a “new industrial revolution” and expects $3-$4 trillion in AI infrastructure spending by 2030.

Nvidia delivered a blockbuster Q2 with $46.7 billion in revenue and net profit of $26.4 billion, both up sharply on a year earlier. Demand for its AI chips, especially the Blackwell line, drove growth.&nbsp;

Nvidia profits surge, but China’s H20 chip remains unsold

Nvidia’s shares dropped 3 percent after the company issued a cautious outlook, signaling a slowdown in growth. This comes after an unprecedented two-year surge fueled by soaring global investment in artificial intelligence. The market reaction reflects concerns about whether the AI boom can maintain its current pace in the face of evolving demand and economic conditions.

Nvidia's 90% jump at risk after earnings 

US President Donald Trump has upended decades of national security policy with a controversial new deal involving chipmaker Nvidia. In exchange for allowing Nvidia to resume the sale of its H20 artificial intelligence (AI) chips to China, previously banned on national security grounds, Trump proposed that the US government take a 15 per cent cut of Nvidia’s sales in the country. The move has sparked intense debate and raised concerns about the future of US export controls.&nbsp;The deal, which also includes Nvidia’s smaller rival, AMD, is seen by some as the beginning of a new approach to managing sensitive technologies. Earlier, export controls on technologies like advanced semiconductors have been non-negotiable, with national security concerns driving the decision to limit or ban sales to adversarial nations. But under Trump’s administration, the rules seem to have shifted, leading to accusations of a “pay-for-play” framework.&nbsp;<h2>Legal and ethical questions surround the deal</h2>The legality of the deal remains unclear, as US law generally prohibits taxes or duties on exported goods, particularly those related to national security. Legal experts have expressed concerns about whether Trump’s deal constitutes an “export tax” or represents a novel form of revenue-sharing, which has never been implemented in US export policy before.While Nvidia has yet to publicly confirm details of the 15 per cent revenue-sharing arrangement, the company stated it “follows rules the US government sets for our participation in worldwide markets.” AMD, meanwhile, confirmed that it had received US approval for some AI processor exports to China but did not directly address the revenue-sharing terms.<h2>Potential impact on US chipmakers and global trade</h2>The financial implications of this deal could affect chipmakers, with analysts suggesting that the 15 per cent revenue cut could reduce margins on China-bound processors by 5 to 15 percentage points. Bernstein analysts warned that this could erode Nvidia and AMD’s overall margins by about a point. The deal could also introduce uncertainty for other industries exporting strategic products to China, as they may now face similar revenue-sharing demands from the US government.The latest move signals a new era in US export controls, with some experts predicting that more deals like this could follow. As the Trump administration continues to reshape export policy, the deal with Nvidia serves as a focal point for broader discussions on the balance between economic opportunities and national security risks.&nbsp;(With inputs from agencies)

The move has sparked intense debate and raised concerns about the future of US export controls. The deal, which also includes Nvidia’s smaller rival, AMD, is seen by some as the beginning of a new approach to managing sensitive technologies.

US President Donald Trump has upended decades of national security policy with a controversial new deal involving chipmaker Nvidia. In exchange for allowing Nvidia to resume the sale of its H20 artificial intelligence (AI) chips to China, previously banned on national security grounds, Trump proposed that the US government take a 15 per cent cut of Nvidia’s sales in the country. The move has sparked intense debate and raised concerns about the future of US export controls. The deal, which also includes Nvidia’s smaller rival, AMD, is seen by some as the beginning of a new approach to managing sensitive technologies. Earlier, export controls on technologies like advanced semiconductors have been non-negotiable, with national security concerns driving the decision to limit or ban sales to adversarial nations. But under Trump’s administration, the rules seem to have shifted, leading to accusations of a “pay-for-play” framework. Legal and ethical questions surround the deal The legality of the deal remains unclear, as US law generally prohibits taxes or duties on exported goods, particularly those related to national security. Legal experts have expressed concerns about whether Trump’s deal constitutes an “export tax” or represents a novel form of revenue-sharing, which has never been implemented in US export policy before. While Nvidia has yet to publicly confirm details of the 15 per cent revenue-sharing arrangement, the company stated it “follows rules the US government sets for our participation in worldwide markets.” AMD, meanwhile, confirmed that it had received US approval for some AI processor exports to China but did not directly address the revenue-sharing terms. Potential impact on US chipmakers and global trade The financial implications of this deal could affect chipmakers, with analysts suggesting that the 15 per cent revenue cut could reduce margins on China-bound processors by 5 to 15 percentage points. Bernstein analysts warned that this could erode Nvidia and AMD’s overall margins by about a point. The deal could also introduce uncertainty for other industries exporting strategic products to China, as they may now face similar revenue-sharing demands from the US government. The latest move signals a new era in US export controls, with some experts predicting that more deals like this could follow. As the Trump administration continues to reshape export policy, the deal with Nvidia serves as a focal point for broader discussions on the balance between economic opportunities and national security risks. (With inputs from agencies)

The move has sparked intense debate and raised concerns about the future of US export controls. The deal, which also includes Nvidia’s smaller rival, AMD, is seen by some as the beginning of a new approach to managing sensitive technologies.

Trump’s deal with Nvidia raises questions on US national security and export policy

US chipmakers Nvidia and AMD have agreed to hand over 15 per cent of their revenues from sales of certain advanced artificial intelligence chips to China, as a condition for obtaining export licences, according to a US official quoted by Reuters. The arrangement covers products such as Nvidia’s H20 chips and AMD’s MI308 processors, high-performance semiconductors designed for AI applications. The Financial Times first reported the deal on Sunday, saying the Trump administration has yet to decide how the collected funds will be used.<h2>Sales ban lifted after April halt</h2>In April, Washington halted sales of Nvidia’s H20 chips to China over export control concerns. However, Reuters reports that the US government last month gave Nvidia the green light to resume sales, with deliveries expected to begin soon. The Commerce Department began issuing export licences for the H20 last week.&nbsp;A Nvidia spokesperson told Reuters the company “follows rules the US government sets for our participation in worldwide markets” and expressed hope that export control rules would allow America to “compete in China and worldwide.” AMD did not comment on the report.<h2>Balancing national security and market access</h2>The unusual revenue-sharing requirement has drawn mixed reactions. Geoff Gertz, a senior fellow at the Center for New American Security, told Reuters the policy seemed contradictory: “Either selling H20 chips to China is a national security risk, in which case we shouldn’t be doing it, or it’s not, in which case why are we putting this extra penalty on the sale?” Commerce Secretary Howard Lutnick has defended the move, calling it part of broader US–China negotiations over access to rare earths.&nbsp;In an interview with CNBC last month, Lutnick described the H20 as Nvidia’s “fourth-best chip” and said it was in US interests for Chinese companies to use American technology, even if the most advanced designs remain banned from export. A US official told Reuters the administration does not view the sale of H20 or similar chips as a compromise to national security. However, critics like Alasdair Phillips-Robins, a former adviser at the Commerce Department during Joe Biden’s presidency, argue the deal trades away “national security protections for revenue for the Treasury.”<h2>AI chip sales remain a geopolitical flashpoint</h2>The export of high-end semiconductors to China remains a core battleground in US–China trade and tech relations. While Washington has tightened restrictions on the most advanced AI chips, it is also seeking to maintain market share for American firms in China’s lucrative technology sector.With the 15 per cent revenue arrangement now in place, the Trump administration is attempting to walk a fine line, leveraging technology access for strategic gains, while keeping a close eye on national security thresholds.&nbsp;(With inputs from the agencies)&nbsp;

Sales were previously halted in April but have resumed. The revenue-sharing requirement is mixed, with concerns over national security. Critics argue it compromises protections for Treasury gains while the US aims to balance tech access and security in ongoing US-China relations.

US chipmakers Nvidia and AMD have agreed to hand over 15 per cent of their revenues from sales of certain advanced artificial intelligence chips to China, as a condition for obtaining export licences, according to a US official quoted by Reuters. The arrangement covers products such as Nvidia’s H20 chips and AMD’s MI308 processors, high-performance semiconductors designed for AI applications. The Financial Times first reported the deal on Sunday, saying the Trump administration has yet to decide how the collected funds will be used. Sales ban lifted after April halt In April, Washington halted sales of Nvidia’s H20 chips to China over export control concerns. However, Reuters reports that the US government last month gave Nvidia the green light to resume sales, with deliveries expected to begin soon. The Commerce Department began issuing export licences for the H20 last week. A Nvidia spokesperson told Reuters the company “follows rules the US government sets for our participation in worldwide markets” and expressed hope that export control rules would allow America to “compete in China and worldwide.” AMD did not comment on the report. Balancing national security and market access The unusual revenue-sharing requirement has drawn mixed reactions. Geoff Gertz, a senior fellow at the Center for New American Security, told Reuters the policy seemed contradictory: “Either selling H20 chips to China is a national security risk, in which case we shouldn’t be doing it, or it’s not, in which case why are we putting this extra penalty on the sale?” Commerce Secretary Howard Lutnick has defended the move, calling it part of broader US–China negotiations over access to rare earths. In an interview with CNBC last month, Lutnick described the H20 as Nvidia’s “fourth-best chip” and said it was in US interests for Chinese companies to use American technology, even if the most advanced designs remain banned from export. A US official told Reuters the administration does not view the sale of H20 or similar chips as a compromise to national security. However, critics like Alasdair Phillips-Robins, a former adviser at the Commerce Department during Joe Biden’s presidency, argue the deal trades away “national security protections for revenue for the Treasury.” AI chip sales remain a geopolitical flashpoint The export of high-end semiconductors to China remains a core battleground in US–China trade and tech relations. While Washington has tightened restrictions on the most advanced AI chips, it is also seeking to maintain market share for American firms in China’s lucrative technology sector. With the 15 per cent revenue arrangement now in place, the Trump administration is attempting to walk a fine line, leveraging technology access for strategic gains, while keeping a close eye on national security thresholds. (With inputs from the agencies)

US chipmakers Nvidia and AMD will give 15% of revenue from certain AI chip sales to China for export licenses. This includes Nvidia’s H20 and AMD’s MI308 chips.

Nvidia, AMD to pay US 15% of China AI chip sales under export deal

Chinese authorities summoned Nvidia representatives on Thursday to discuss "serious security issues" over some of its artificial intelligence chips, as the US tech giant finds itself entangled in trade tensions between Beijing and Washington.A key issue has been Chinese access to the "H20", a less powerful version of Nvidia's AI processing units that the company developed specifically for export to China.The California-based firm said this month it would resume H20 sales to China after Washington pledged to remove licensing curbs that had halted exports.But the firm still faces obstacles -- US lawmakers have proposed plans to require Nvidia and other manufacturers of advanced AI chips to include built-in location tracking capabilities. And Beijing's top internet regulator said Thursday it had summoned Nvidia representatives to discuss recently discovered "serious security issues" involving the H20.The Cyberspace Administration of China said it had asked Nvidia to "explain the security risks of vulnerabilities and backdoors in its H20 chips sold to China and submit relevant supporting materials".The statement posted on social media noted that, according to US experts, location tracking and remote shutdown technologies for Nvidia chips "are already matured".The announcement marked the latest complication for Nvidia in selling its advanced products in the key Chinese market, where it is in increasingly fierce competition with homegrown technology firms.Nvidia committed CEO Jensen Huang said during a closely watched visit to Beijing this month that his firm remained committed to serving local customers.Huang said he had been assured during talks with top Chinese officials during the trip that the country was "open and stable"."They want to know that Nvidia continues to invest here, that we are still doing our best to serve the market here," he said.Nvidia this month became the first company to hit $4 trillion in market value -- a new milestone in Wall Street's bet that AI will transform the global economy.Jost Wubbeke of the Sinolytics consultancy told AFP the move by China to summon Nvidia was "not surprising in the sense that targeting individual US companies has become a common tool in the context of US-China tensions"."What is surprising, however, is the timing," he noted, after the two countries agreed to further talks to extend their trade truce."China's action may signal a shift toward a more assertive stance," Wubbeke said.Beijing is also aiming to reduce reliance on foreign tech by promoting Huawei's domestically developed 910C chip as an alternative to the H20, he added."From that perspective, the US decision to allow renewed exports of the H20 to China could be seen as counterproductive, as it might tempt Chinese hyperscalers to revert to the H20, potentially undermining momentum behind the 910C and other domestic alternatives."New hurdles to Nvidia's operation in China come as the country's economy wavers, beset by a years-long property sector crisis and heightened trade headwinds under US President Donald Trump.Chinese President Xi Jinping has called for the country to enhance self-reliance in certain areas deemed vital for national security -- including AI and semiconductors -- as tensions with Washington mount.The country's firms have made great strides in recent years, with Huang praising their "super-fast" innovation during his visit to Beijing this month.&nbsp;

Chinese authorities summoned Nvidia representatives on Thursday to discuss serious security issues over some of its artificial intelligence chips, as the US tech giant finds itself entangled in trade tensions between Beijing and Washington.

Chinese authorities summoned Nvidia representatives on Thursday to discuss "serious security issues" over some of its artificial intelligence chips, as the US tech giant finds itself entangled in trade tensions between Beijing and Washington. A key issue has been Chinese access to the "H20", a less powerful version of Nvidia's AI processing units that the company developed specifically for export to China. The California-based firm said this month it would resume H20 sales to China after Washington pledged to remove licensing curbs that had halted exports. But the firm still faces obstacles -- US lawmakers have proposed plans to require Nvidia and other manufacturers of advanced AI chips to include built-in location tracking capabilities. And Beijing's top internet regulator said Thursday it had summoned Nvidia representatives to discuss recently discovered "serious security issues" involving the H20. The Cyberspace Administration of China said it had asked Nvidia to "explain the security risks of vulnerabilities and backdoors in its H20 chips sold to China and submit relevant supporting materials". The statement posted on social media noted that, according to US experts, location tracking and remote shutdown technologies for Nvidia chips "are already matured". The announcement marked the latest complication for Nvidia in selling its advanced products in the key Chinese market, where it is in increasingly fierce competition with homegrown technology firms. Nvidia committed CEO Jensen Huang said during a closely watched visit to Beijing this month that his firm remained committed to serving local customers. Huang said he had been assured during talks with top Chinese officials during the trip that the country was "open and stable". "They want to know that Nvidia continues to invest here, that we are still doing our best to serve the market here," he said. Nvidia this month became the first company to hit $4 trillion in market value -- a new milestone in Wall Street's bet that AI will transform the global economy. Jost Wubbeke of the Sinolytics consultancy told AFP the move by China to summon Nvidia was "not surprising in the sense that targeting individual US companies has become a common tool in the context of US-China tensions". "What is surprising, however, is the timing," he noted, after the two countries agreed to further talks to extend their trade truce. "China's action may signal a shift toward a more assertive stance," Wubbeke said. Beijing is also aiming to reduce reliance on foreign tech by promoting Huawei's domestically developed 910C chip as an alternative to the H20, he added. "From that perspective, the US decision to allow renewed exports of the H20 to China could be seen as counterproductive, as it might tempt Chinese hyperscalers to revert to the H20, potentially undermining momentum behind the 910C and other domestic alternatives." New hurdles to Nvidia's operation in China come as the country's economy wavers, beset by a years-long property sector crisis and heightened trade headwinds under US President Donald Trump. Chinese President Xi Jinping has called for the country to enhance self-reliance in certain areas deemed vital for national security -- including AI and semiconductors -- as tensions with Washington mount. The country's firms have made great strides in recent years, with Huang praising their "super-fast" innovation during his visit to Beijing this month.

Chinese authorities summoned Nvidia representatives on Thursday to discuss "serious security issues" over some of its artificial intelligence chips, as the US tech giant finds itself entangled in trade tensions between Beijing and Washington.

'Serious security issues': China summons chip giant Nvidia over alleged security risks

US chip giant Nvidia is facing fresh hurdles in its China operations, as supplies of its H20 artificial intelligence chips, the most powerful semiconductors currently permitted for export to China, remain sharply constrained. According to The Information, Nvidia has informed Chinese customers that stock of the H20 is limited, even as the company prepares to resume sales under tighter US scrutiny. The H20 chip, part of Nvidia’s custom lineup tailored to comply with Washington’s sweeping export restrictions, has emerged as a litmus test for how US firms navigate the geopolitical semiconductor battleground. The Biden administration’s export control regime, intensified in April, forced Nvidia to cancel manufacturing capacity reserved at Taiwan Semiconductor Manufacturing Company (TSMC) and void customer orders in China, according to The Information, which cited sources familiar with the matter.&nbsp;While Nvidia has officially announced plans to resume shipments of the H20, the move hinges on the US government’s willingness to grant export licences, a process that remains politically sensitive and tightly regulated. “Manufacturing new chips from scratch could take nine months,” Nvidia CEO Jensen Huang reportedly said at a media event in Beijing this week, according to The Information. Huang noted that TSMC had already reallocated H20 production lines to serve other clients after the US ban.&nbsp;Despite Huang’s recent optimism, he hinted that licensing approvals for Chinese clients would arrive swiftly, The Information reported that Nvidia currently has no plans to restart H20 production. The report, however, did not cite specific sources for this claim. Nvidia declined to comment on the article, and Reuters noted that it could not independently verify the report’s claims. Meanwhile, Nvidia is working on a new GPU product tailored for Chinese markets, the RTX Pro GPU, which is designed to comply fully with US export rules. The announcement indicates that Nvidia is attempting to maintain a foothold in China’s AI race without violating Washington’s tightening guardrails on advanced semiconductor exports.<h2>The broader backdrop</h2>The H20, along with two other chips, the L20 and L2, were introduced by Nvidia last year in response to the US Commerce Department’s restrictions that banned the sale of its flagship A100 and H100 GPUs to China. Beijing has long viewed Nvidia’s chips as critical to advancing its domestic AI ecosystem. But the H20 chip’s limited availability has slowed down several large-scale AI training efforts in the country. Meanwhile, Chinese tech giants like Alibaba and Baidu are racing to develop alternatives using domestic hardware or chips from other suppliers, including Huawei.&nbsp;The escalating chip rivalry comes amid broader US-China tensions, with semiconductors now at the heart of a multi-layered technological and strategic competition. With supply of the H20 chip strained and production not yet resumed, Nvidia’s role in China remains uncertain. The US company is clearly navigating a fine line, attempting to maintain market presence in one of the world’s largest AI frontiers while staying within the bounds of export laws crafted to curb China’s technological ascent.&nbsp;As per Reuters, the outlook hinges not only on Nvidia’s supply chains, but also on Washington’s licensing stance in the months ahead. &nbsp;

As per Reuters, the outlook hinges not only on Nvidia supply chains, but also on Washington licensing stance in the months ahead.

US chip giant Nvidia is facing fresh hurdles in its China operations, as supplies of its H20 artificial intelligence chips, the most powerful semiconductors currently permitted for export to China, remain sharply constrained. According to The Information, Nvidia has informed Chinese customers that stock of the H20 is limited, even as the company prepares to resume sales under tighter US scrutiny. The H20 chip, part of Nvidia’s custom lineup tailored to comply with Washington’s sweeping export restrictions, has emerged as a litmus test for how US firms navigate the geopolitical semiconductor battleground. The Biden administration’s export control regime, intensified in April, forced Nvidia to cancel manufacturing capacity reserved at Taiwan Semiconductor Manufacturing Company (TSMC) and void customer orders in China, according to The Information, which cited sources familiar with the matter. While Nvidia has officially announced plans to resume shipments of the H20, the move hinges on the US government’s willingness to grant export licences, a process that remains politically sensitive and tightly regulated. “Manufacturing new chips from scratch could take nine months,” Nvidia CEO Jensen Huang reportedly said at a media event in Beijing this week, according to The Information. Huang noted that TSMC had already reallocated H20 production lines to serve other clients after the US ban. Despite Huang’s recent optimism, he hinted that licensing approvals for Chinese clients would arrive swiftly, The Information reported that Nvidia currently has no plans to restart H20 production. The report, however, did not cite specific sources for this claim. Nvidia declined to comment on the article, and Reuters noted that it could not independently verify the report’s claims. Meanwhile, Nvidia is working on a new GPU product tailored for Chinese markets, the RTX Pro GPU, which is designed to comply fully with US export rules. The announcement indicates that Nvidia is attempting to maintain a foothold in China’s AI race without violating Washington’s tightening guardrails on advanced semiconductor exports. The broader backdrop The H20, along with two other chips, the L20 and L2, were introduced by Nvidia last year in response to the US Commerce Department’s restrictions that banned the sale of its flagship A100 and H100 GPUs to China. Beijing has long viewed Nvidia’s chips as critical to advancing its domestic AI ecosystem. But the H20 chip’s limited availability has slowed down several large-scale AI training efforts in the country. Meanwhile, Chinese tech giants like Alibaba and Baidu are racing to develop alternatives using domestic hardware or chips from other suppliers, including Huawei. The escalating chip rivalry comes amid broader US-China tensions, with semiconductors now at the heart of a multi-layered technological and strategic competition. With supply of the H20 chip strained and production not yet resumed, Nvidia’s role in China remains uncertain. The US company is clearly navigating a fine line, attempting to maintain market presence in one of the world’s largest AI frontiers while staying within the bounds of export laws crafted to curb China’s technological ascent. As per Reuters, the outlook hinges not only on Nvidia’s supply chains, but also on Washington’s licensing stance in the months ahead.

According to The Information, Nvidia has informed Chinese customers that stock of the H20 is limited, even as the company prepares to resume sales under tighter US scrutiny.

Nvidia’s China AI chip plans hit pause as H20 supply remains tight

US technology giant Nvidia has announced that it will resume sales of its advanced H20 artificial intelligence (AI) chips to China, marking a dramatic reversal from earlier export restrictions imposed by the Trump administration. The decision comes after assurances from Washington that the necessary export licenses for the H20 chips will be granted. In a blog post published on July 14, Nvidia revealed that the US government has assured the company that it will grant licenses for the sale of its China-specific H20 AI chips.&nbsp;&nbsp;These chips, designed with lower specifications than Nvidia’s flagship products, were initially restricted due to concerns that they could be used by the Chinese military. The previous restrictions had been imposed earlier this year, blocking Nvidia’s ability to sell the chips to China. However, Nvidia’s CEO, Jensen Huang, has spent months lobbying US policymakers, arguing that the restrictions were hindering competition in a rapidly growing sector.&nbsp;&nbsp;Huang’s efforts were recently bolstered by meetings with President Trump, leading to the eventual reversal of the decision. Nvidia’s resumption of sales to China follows a broader trend of easing trade tensions between the two countries, as both governments seek to negotiate a long-term resolution to their ongoing trade dispute.&nbsp;<h2>Positive market reaction and strategic importance for Nvidia</h2>&nbsp;The news of Nvidia’s resumption of sales to China was met with a positive response from global markets. Following the announcement, Nasdaq futures surged, and Chinese stocks, particularly in the tech sector, saw strong gains. The Hang Seng Tech Index rose by as much as 2.2 per cent, and companies like Beijing Sinnet Technology Co. saw jumps of up to 7.6 per cent.&nbsp;Nvidia, a key player in the AI semiconductor market, has long relied on China as a crucial market. With the country being home to half of the world’s AI researchers, Huang emphasised the importance of American companies being able to compete in the Chinese market. “It’s so innovative and dynamic here in China that it’s really important that American companies are able to serve the market,” Huang said during a recent appearance in Beijing.&nbsp;<h2>Future prospects and AI market dynamics</h2>&nbsp;The US government’s decision to approve Nvidia’s AI chip sales to China marks a significant shift in the ongoing AI race between the two global powers. Despite earlier fears that China could leverage these advanced chips for military purposes, Huang remains confident that concerns are overblown, asserting that China simply can’t rely on them due to the potential for restrictions to be reinstated at any time.&nbsp;The resumption of H20 chip sales is expected to help Nvidia recover from earlier losses tied to unsold inventory. The company had anticipated up to $15 billion in sales from the H20 chips this fiscal year before the ban was enforced. As Nvidia continues to dominate the AI semiconductor market, this policy change could further solidify its position, both in China and globally.

The US government’s decision to approve Nvidia’s AI chip sales to China marks a significant shift in the ongoing AI race between the two global powers, despite earlier fears that China could leverage these advanced chips for military purposes.

US technology giant Nvidia has announced that it will resume sales of its advanced H20 artificial intelligence (AI) chips to China, marking a dramatic reversal from earlier export restrictions imposed by the Trump administration. The decision comes after assurances from Washington that the necessary export licenses for the H20 chips will be granted. In a blog post published on July 14, Nvidia revealed that the US government has assured the company that it will grant licenses for the sale of its China-specific H20 AI chips. These chips, designed with lower specifications than Nvidia’s flagship products, were initially restricted due to concerns that they could be used by the Chinese military. The previous restrictions had been imposed earlier this year, blocking Nvidia’s ability to sell the chips to China. However, Nvidia’s CEO, Jensen Huang, has spent months lobbying US policymakers, arguing that the restrictions were hindering competition in a rapidly growing sector. Huang’s efforts were recently bolstered by meetings with President Trump, leading to the eventual reversal of the decision. Nvidia’s resumption of sales to China follows a broader trend of easing trade tensions between the two countries, as both governments seek to negotiate a long-term resolution to their ongoing trade dispute. Positive market reaction and strategic importance for Nvidia The news of Nvidia’s resumption of sales to China was met with a positive response from global markets. Following the announcement, Nasdaq futures surged, and Chinese stocks, particularly in the tech sector, saw strong gains. The Hang Seng Tech Index rose by as much as 2.2 per cent, and companies like Beijing Sinnet Technology Co. saw jumps of up to 7.6 per cent. Nvidia, a key player in the AI semiconductor market, has long relied on China as a crucial market. With the country being home to half of the world’s AI researchers, Huang emphasised the importance of American companies being able to compete in the Chinese market. “It’s so innovative and dynamic here in China that it’s really important that American companies are able to serve the market,” Huang said during a recent appearance in Beijing. Future prospects and AI market dynamics The US government’s decision to approve Nvidia’s AI chip sales to China marks a significant shift in the ongoing AI race between the two global powers. Despite earlier fears that China could leverage these advanced chips for military purposes, Huang remains confident that concerns are overblown, asserting that China simply can’t rely on them due to the potential for restrictions to be reinstated at any time. The resumption of H20 chip sales is expected to help Nvidia recover from earlier losses tied to unsold inventory. The company had anticipated up to $15 billion in sales from the H20 chips this fiscal year before the ban was enforced. As Nvidia continues to dominate the AI semiconductor market, this policy change could further solidify its position, both in China and globally.