Nvidia Stock Soars to Record High as AI Chipmaker Resumes China Sales After US Ban Reversal

Nvidia Stock Hits Fresh Record as AI Chipmaker Set to Resume Sales in China After US Reversal on Ban

Nvidia (NVDA) stock surged more than 4% in early trading following the announcement that the AI chipmaker is applying to resume sales of its H20 GPUs in China. This move comes after a US ban that resulted in billions of dollars in lost sales. In a blog post, Nvidia stated it is filing the application and that the US government has assured the company that licenses will be granted, with hopes to start deliveries soon. Nvidia stock closed at a record high, with shares trading at $170.70 at Tuesday’s close.

Nvidia has been introducing lower-power versions of its AI chips for the Chinese market to comply with US export controls aimed at limiting China’s AI technology advancement for national security reasons. The company began sales of its H20 GPUs—a less powerful version of its prior generation Hopper chips—to China in 2024.

The Trump administration implemented a ban on sales of H20 AI chips to China in April, leading to a $2.5 billion loss in the first quarter of Nvidia’s 2026 fiscal year and an estimated $8 billion loss in the second quarter. CEO Jensen Huang described the ban as “deeply painful,” noting that Nvidia cannot produce another Hopper AI chip like H20 for China under current restrictions. China accounts for roughly 13% of Nvidia’s 2025 revenue.

Analysts predict that while Nvidia may not ship many H20 chips in the second quarter, a “substantial catch-up” could occur in the second half of the year if sales resume. This could add $0.40-$0.50 to Nvidia’s per-share earnings in 2026 if the company generates $15 billion-$20 billion in revenue from China.

Nvidia’s stock has reached new record highs over the past month, pushing the company’s market cap above $4 trillion and making it the world’s most valuable company. Rival AI chipmaker Advanced Micro Devices (AMD) also saw a surge, rising more than 6% after announcing plans to resume sales of its AI chips in China, pending US Commerce Department approval.