US Clears Nvidia’s AI Chips for China as Nasdaq Gains 0.26%

* U.S. government lifts ban on Nvidia’s H20 AI chip exports to China. * Nvidia stock surge drives Nasdaq, S&P 500 to record highs. The United States government has authorized Nvidia to resume sales of its advanced H20 AI chips to China, reversing previous export restrictions. On July 15, 2025, CBS News reported that the government will issue export licenses for the chips shortly, with shipments expected to begin soon. This development marks a significant shift in U.S. trade policy, coming amid ongoing trade tensions between the United States and China, particularly over technology exports. On July 15, Nvidia’s CEO Jensen Huang confirmed the decision in a company blog post and during public remarks in Beijing, where he highlighted China’s importance to global AI development. Huang has previously stated that limiting access to advanced AI technologies could jeopardize U.S. leadership in the tech sector. According to Huang, China is home to half of the world's AI developers, which underscores the country's critical role in the industry. Furthermore, he argued that allowing these chip sales is essential for Nvidia to maintain its competitive edge and long-term profitability, as the company faced financial losses from prior restrictions. The news spurred immediate market activity. According to a report from Investopedia on July 15, Nvidia’s stock rose sharply in pre-market trading following the announcement. The Economic Times also reported on the surge. As a result, the Nasdaq Composite and S&P 500 indexes achieved record highs on July 15, driven partly by Nvidia’s performance. In addition, other chipmakers, including AMD, saw their shares increase. Analysts attributed the market-wide surge to optimism about easing trade tensions and the potential for growth for U.S. technology firms in China’s expanding AI market. This policy reversal is also significant within the broader context of U.S.-China trade relations. In recent years, Washington has intensified restrictions on advanced technology exports. For example, the government imposed new controls in October 2022, citing national security concerns, which included bans on exporting high-performance semiconductors essential for advanced computing and AI applications. However, the decision to lift restrictions on Nvidia’s H20 chips may signal a broader effort to reduce trade friction, a move that could be tied to ongoing tariff negotiations between the two nations. On July 15, CoinMarketCap reported that as of 12:00 UTC, Nvidia (NVDA) was trading at $452.90, and its 24-hour trading volume had increased by 3.2%.