Nvidia Stock Pops After President Trump OKs Sales of New H200 AI Chips to China

Core Viewpoint - Nvidia's stock experienced a 2.3% increase in after-hours trading due to the U.S. government's decision to allow the export of its new H200 AI chips to select customers in China, despite a 25% revenue cut to the government from these sales [2][10]. Group 1: Nvidia's H200 AI Chip - The H200 is Nvidia's latest data center AI chip designed for the Chinese market, offering more power than its predecessor, the H20 chip, but less than Nvidia's current GPUs for U.S. and allied nations [5]. - The U.S. government previously imposed export controls on the H20 chip, but reversed its stance by allowing sales to select Chinese customers with a 15% revenue cut earlier this year [6]. - There are concerns regarding whether the Chinese government will restrict purchases of the H200 chip, although it is expected to be more powerful than Chinese-made AI chips, making it a valuable asset for Chinese companies [8]. Group 2: Market Impact and Financials - Nvidia's market capitalization stands at $443.3 billion, with a gross margin of 70.05% and a current stock price of $185.15 [9]. - The potential revenue and profit boost from H200 sales could positively impact Nvidia's future quarterly reports, provided there are no restrictions from the Chinese government [10]. - The decision to allow exports has sparked controversy, with concerns about China gaining access to advanced AI technology [9].