Nvidia (NVDA) Stock Soars as Trump Greenlights H200 Chip Sales to China

Nvidia's stock just got a major power-up.

The Trump administration's approval to resume sales of its high-performance H200 chips to China sent NVDA shares climbing—a move that cuts through prior export restrictions and reopens a massive market.

Geopolitics meets silicon.

This isn't just about moving boxes; it's a strategic bypass of the tech cold war's front lines. The H200, a key engine for AI and data centers, is back in play for Chinese hyperscalers and tech firms. Supply chains that were cooling down are suddenly heating up.

Wall Street's predictable reaction.

Analysts scrambled to update models, and trading desks lit up—because nothing gets capital flowing like a regulatory green light after a long red. The rally reflects pure relief, a bet that revenue streams frozen by policy can now thaw.

The fine print of the deal.

While full details are under wraps, the approval likely comes with strings attached—think strict end-use checks and maybe caps on volume. Nvidia navigates a tightrope: capturing demand while staying in Washington's good graces. One misstep could trip the circuit again.

A cynical footnote for the finance crowd.

Let's be real—this pop is as much about narrative as numbers. A single headline from the White House can now 'create' billions in market cap, proving yet again that in modern markets, politics often writes the earnings report. The chips are powerful, but the real catalyst? A signature.

What happens next?

Watch the order books. If Chinese clients pile in, this could be a sustained tailwind. If not, it's just another volatility spike in the endless drama of global tech. Either way, Nvidia just got its permission slip stamped—and the market is grading on a curve.

TLDR

• President Trump announced that Nvidia will be allowed to sell H200 AI chips to approved customers in China with a 25% fee paid to the U.S. government.
• The H200 is Nvidia’s second-best AI chip, nearly six times more powerful than the H20 chips currently permitted for export to China.
• Nvidia shares rose 2% in after-hours trading following the announcement on Truth Social.
• The Commerce Department will finalize the arrangement details, with similar deals available for AMD and Intel.
• It remains uncertain whether China will permit its companies to purchase the H200 chips despite Trump’s claim that President Xi responded positively.

President Donald Trump announced Monday that Nvidia will be permitted to sell its H200 AI processors to approved customers in China. The move comes with a 25% fee on sales paid to the U.S. government.

BREAKING: President TRUMP says he has called China's President Xi and approved sales of Nvidia's H200 chip to China.

Trump says 25% of revenue will be paid to the US and the "same approach" will apply to AMD, Intel, and others. pic.twitter.com/n65cTwrEQy

— The Kobeissi Letter (@KobeissiLetter) December 8, 2025

Trump shared the news on Truth Social, stating he informed President Xi Jinping about the decision. He claimed Xi “responded positively” to the announcement.

The H200 represents Nvidia’s second-best AI chip. According to the Institute for Progress, it’s nearly six times more powerful than the H20, which is currently the most advanced chip legally exportable to China.

NVIDIA Corporation, NVDA

Nvidia shares jumped 2% in after-hours trading after the announcement. The stock had already gained 3% during regular trading hours on earlier reports about the potential approval.

Trump Administration Details the Arrangement

The Commerce Department will finalize the specifics of the deal. Trump confirmed the same approach will apply to Advanced Micro Devices and Intel for their AI chip exports.

A WHITE House official explained the 25% fee will be collected as an import tax from Taiwan. The chips will undergo security review by U.S. officials before export to China.

The fee is higher than the 15% rate Trump proposed in August for the less advanced H20 chip. Trump emphasized the arrangement excludes Nvidia’s latest Blackwell and upcoming Rubin chips.

Nvidia released a statement calling the decision a “thoughtful balance that is great for America.” The company noted it WOULD ship to approved commercial customers vetted by the Commerce Department.

Questions Remain About China’s Response

China has effectively banned its technology companies from buying the H20 chip in recent months. Beijing has cautioned Chinese tech firms against purchasing Nvidia chips downgraded for the Chinese market.

Nvidia’s current financial guidance doesn’t assume any revenue from China. Whether Chinese companies will actually be allowed to purchase the H200 remains unclear.

The Chinese foreign ministry said Tuesday that China believes it should cooperate with the U.S. for mutual benefits. George Chen from consultancy The Asia Group expects Chinese regulators to soften their stance on Nvidia following Trump’s comments about Xi’s reaction.

Several Democratic senators called Trump’s decision a “colossal economic and national security failure.” Republican Representative John Moolenaar warned that China would use the chips to strengthen military capabilities.

The Blackwell chip currently used by U.S. AI firms is about 1.5 times faster than H200 chips for training AI systems. For inferencing work, it’s five times faster according to the Institute for Progress.

Trump met with Nvidia CEO Jensen Huang last week. The executive was made aware of the administration’s position on export controls during the meeting.

Intel declined to comment on the announcement. AMD and the Commerce Department did not respond to requests for comment.