Nvidia (NVDA), AMD (AMD) and Intel (INTC) shares rose in extended trading on Monday after President Trump said he had approved the sale of Nvidia’s H200 GPUs to China.
“I have informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security,” Trump wrote in a post on Truth Social. “President Xi responded positively! [25%] will be paid to the United States of America. This policy will support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers.”
Trump continued: “The Department of Commerce is finalizing the details, and the same approach will apply to AMD, Intel, and other GREAT American Companies.”
Nvidia shares rose 2%, while AMD added 1.8% and Intel rose fractionally.
The Trump Administration had previously allowed Nvidia to sell a less powerful GPU, the H20, to China. However, Chinese state run media criticized the chip for lacking technological prowess, being environmentally unfriendly and calling it unsafe. Regulators in the Asian country reportedly halted imports of the H20 over security issues.
The Jensen Huang-led company reacted positively to the news. “We applaud President Trump’s decision to allow America’s chip industry to compete to support high paying jobs and manufacturing in America,” an Nvidia spokesperson told Seeking Alpha via email. “Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America.”
The news comes after an earlier report stated that the U.S. Commerce Dept. was gearing up to allow Nvidia to sell the H200 GPUs to China.
The Jensen Huang-led company has removed the prospects of any China-related sales from its financial guidance it provides to investors. Earlier this month, Huang visited some Republican lawmakers who have expressed skepticism about allowing Nvidia’s high-end GPUs to be sold to China, amid national security concerns.
Trump praised Huang recently, calling him a “smart man” after the two had a private meeting last week.
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