Nvidia shares experienced a 2.2 per cent increase following reports that the US Commerce Department is considering allowing the export of its H200 chip to China. The news was initially reported by Semafor, citing a source familiar with the matter. Nvidia is a technology company known for its graphics processing units (GPUs) and artificial intelligence (AI) solutions. The company’s products are widely used in gaming, professional visualisation, data centres, and automotive industries.
The potential approval of these shipments could indicate a more conciliatory stance towards China, particularly after discussions between US President Donald Trump and Chinese leader Xi Jinping in Busan, South Korea last month, which aimed to de-escalate trade and technology tensions between the two nations. These talks appear to signal the beginning of a truce between the two countries.
However, concerns remain within Washington circles regarding the implications of exporting advanced AI chips to China. Some officials worry that these technologies could enhance Beijing’s military capabilities, which initially prompted the Biden administration to impose restrictions on such exports. The balance between economic opportunities and national security considerations remains a key point of contention.
Neither Reuters nor Nvidia could be immediately reached for comment, and the US Commerce Department has yet to respond to inquiries regarding the potential policy change. The situation remains fluid as stakeholders await further confirmation and clarification from relevant authorities.
