Trump Approved Nvidia's H200 Exports, but China's Limits Could Change Everything

Core Insights - Nvidia has received approval from the U.S. government to sell its H200 processors to China, which are high-end GPUs designed for AI applications, previously subject to an export ban [2][4] - The U.S. government will take a 25% cut from each sale, and the Department of Commerce is finalizing the details of this approval [2][9] - Despite this approval, Chinese authorities may impose restrictions on the use of these chips, encouraging the use of locally produced semiconductors [5][6] Company Impact - Nvidia expressed support for the decision, highlighting the potential for job creation and manufacturing in America [4] - The H200 chip is part of a previous generation and has been succeeded by more advanced chips, which were not included in the deal [7] - The financial implications for Nvidia could be significant, with the total addressable market in China estimated at $50 billion, and the company previously estimated a loss of approximately $8 billion per quarter due to the export ban [9] Market Considerations - Investors are advised to remain cautious until clarity is provided on whether Chinese regulators will allow the sale of Nvidia's chips [10] - Nvidia's stock is currently viewed as attractively priced at 25 times next year's expected sales [10]