Per a Semafor report, the U.S. Commerce Department is set to grant Nvidia (NVDA) the ability to export its H200 chips to China. The H200 chip is estimated to be twice as powerful as Nvidia’s H20 chip, the most advanced AI semiconductor that can legally be exported to China. The Semafor report has yet to be confirmed by Nvidia or the Commerce Department, but it would come just months after Trump reversed the previous Nvidia China export chip ban.
According to Semafor, the US enacted strict export restrictions under the Biden Administration in an effort to prevent China from catching up on AI. But some in the White House believe those restrictions have more or less failed, according to people familiar with their thinking.
Back in September, China’s internet regulator issued a ban on top tech firms purchasing Nvidia’s AI chips. Amid the ongoing AI race, Beijing has put pressure on Chinese tech companies to boost the country’s homegrown semiconductor industry and break their reliance on Nvidia. Therefore, the US allowing Nvidia to export the H200 chip to China is significant and could boost Nvidia’s sales in the region.
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Shares in Nvidia (NVDA stock rose 2% after the Semafor report was published. Nvidia’s GPU growth has been remarkable, with the company generating quarterly revenue of $57 billion, which represents a 62% increase year-over-year right now. Through several key strategic developments, the company has spearheaded various major advancements in AI chip architecture. The demand for AI processing power continues to accelerate across data centers worldwide, and Nvidia has been the primary beneficiary.