Briefing
Nvidia and AMD shares soar after US clears China chip sales
The news: Nvidia and AMD will resume sales of some AI chips to China after securing assurances from the US government that export licences will be approved, in a major reversal of earlier restrictions.
Nvidia said it received confirmation that the US would green-light licences for its H20 artificial intelligence accelerator, and AMD said it received similar assurances from the Commerce Department for its MI308 chips.
What they said: “The US government has assured Nvidia that licences will be granted, and Nvidia hopes to start deliveries soon,” Nvidia said in a statement.
Similarly, AMD said in astatement that it “plans to restart shipments of its MI308 chips to China once licenses for sales are approved.”
The context: Nvidia’s H20 chip was developed to comply with earlier US trade curbs imposed by the US government to limit China’s access to advanced AI chips. But restrictions were tightened in April under the Trump administration, blocking sales on that chip too, as well as AMD’s MI308 chips.
The reversal comes amid broader trade talks, with both countries agreeing to ease various tech and trade restrictions.
Nvidia expects resumed H20 sales could restore billions in revenue. According to Reutes, Chinese firms, including ByteDance and Tencent, are already submitting applications to buy the chips.
Nvidia CEO Jensen Huang, who met with Donald Trump last week, is currently in Beijing and is scheduled to brief the media on Wednesday during a supply chain expo.
The numbers: Shares in Nvidia climbed as much as 5% to a new intraday high of US$172.40 each. AMD shares rose as much as 8.5%.
The sources: Bloomberg, The Wall Street Journal, Reuters
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