Nvidia (NASDAQ: NVDA) is surging in pre-market trading after securing key U.S. approval to resume sales of its advanced H20 AI chip in China.
The stock closed Monday at $164, down 0.52% on the day, but it’s rebounding sharply in pre-market trading to $172, up over 5%, pushing it firmly above $170 and marking a new all-time high.
This rally follows news that U.S. regulators have given Nvidia the green light to restart sales of its H20 chip in China, which had previously faced restrictions under export controls.
The H20 is designed for high-performance computing and AI applications, a rapidly growing market in China.
The move follows Nvidia CEO Jensen Huang’s visit to Beijing, where he met with government and industry leaders to discuss the role of AI in boosting productivity and ensuring secure innovation.
During the trip, he confirmed plans to resume H20 GPU sales with government approval expected soon.
Impact of easing trade tensions
This approval arrives amid easing trade tensions between the United States and China. This dynamic has partly fueled Nvidia’s recent rally and helped it become the first company in the world to surpass $4 trillion in market capitalization.
Following the news, Nvidia bull and Wedbush Securities analyst Dan Ives called the resumption of sales a “gamechanger” for the American semiconductor giant, with the potential to generate $30 billion in revenue.
Attention now turns to Nvidia’s upcoming product line. The company is planning to launch a China-focused version of its Blackwell RTX Pro 6000 chip as early as September, designed to comply with export restrictions.
Featured image via Shutterstock
