Shares of Nvidia experienced a notable surge, rising by 2% following a report from Bloomberg indicating that the Trump administration is contemplating the possibility of allowing the company to sell its advanced H200 chips to China. This potential decision is significant as the H200 chips represent Nvidia’s best offerings from the Hopper generation, contrasting sharply with the H20 chips which were tailored specifically for the Chinese market and intentionally limited in capability.
Previously, discussions involving the potential sale of Nvidia’s Blackwell chips to China were anticipated ahead of high-level talks between President Trump and Chinese President Xi Jinping scheduled for late October. However, this item was abruptly removed from the agenda, as reported by The Wall Street Journal.
Nvidia’s recent performance in 2025 has been impressive, primarily driven by factors unrelated to its China business. The firm faced substantial hurdles due to new export restrictions that impeded its ability to distribute H20 chips in China, leading to a staggering $4.5 billion impairment charge in its first quarter earnings. Moreover, the company estimated that its second-quarter revenue could have been boosted by $8 billion without these export limitations.
After reaching an accord with the Trump administration that permitted shipments of the H20 chip, Nvidia encountered a retaliatory measure from China, wherein Chinese technology firms were reportedly banned from procuring these semiconductors. CFO Colette Kress highlighted in an analysts’ conference call that anticipated large orders for the H20 chip failed to materialize in the quarter due to ongoing geopolitical tensions and heightened competition within the Chinese market.
While analysts were optimistic about Nvidia’s strong performance in its third-quarter earnings report, CEO Jensen Huang appeared less enthusiastic about the immediate market response. The developments surrounding potential sales to China may provide a more favorable outlook and potentially lift investor sentiment further in the upcoming sessions.
