Nvidia plans to resume sales of H20 AI chips to China as part of a U.S. rare earths trade deal, with Commerce Secretary Lutnick confirming the connection to critical mineral shipments. The company has filed for U.S. export licenses and expects approval soon, boosting shares by 4%.

Market Overview:
– US to license H20 AI chip exports
– Nvidia files for license, expects approval
– AMD to resume MI308 chip shipments

Key Points:
– Nvidia and AMD shares rise on export news
– H20 chips critical for global AI standard
– ByteDance and Tencent on approved buyer list

Looking Ahead:
– Monitor U.S. license approvals
– Watch Jensen Huang’s briefing in Beijing
– Track U.S. legislative responses

Bull Case:
– Resumption of H20 chip sales to China opens revenue stream
– Tie-in with rare earths deal supports U.S. industries
– Shares of Nvidia and AMD jump on news

Bear Case:
– Political risks could disrupt licensing
– Deal-by-deal approval adds complexity
– Continued tensions may undermine U.S. leadership

Jensen Huang to address media in Beijing, emphasizing China’s AI market and American firms’ need for footholds amid competition. U.S. legislators scrutinize export reversal, urging caution over national security concerns and interactions with restricted entities.

Read more at Nasdaq: Nvidia’s (NVDA) AI Chips Return to China on Rare Earths Deal