Nvidia Wins Trump's Approval to Sell H200 AI Chips to China, But There's a Catch

Core Insights - Nvidia is set to sell its H200 AI chips to approved customers in China, with a 25% revenue cut going to the U.S. government [1][6] - The H200 chip had previously been banned due to national security concerns, and this approval follows a similar deal for the less advanced H20 chip, which had a 15% revenue-sharing agreement [2][6] - CEO Jensen Huang has advocated for greater access to advanced chips, arguing that restrictions may hinder U.S. competitiveness in the AI sector [3] Market Implications - The approval could lead to more sales for Nvidia and other chipmakers like AMD, although Chinese government restrictions may still limit purchases due to security concerns [4] - Nvidia's stock has seen a nearly 40% increase since the beginning of the year, indicating positive market sentiment despite the uncertainties [5]