Nvidia Stock Jumps as Chipmaker Plans to Resume Sales of Key AI Chip to China
Nvidia said it plans to resume sales of its best-selling H20 AI chip to China, days after CEO Jensen Huang met with President Donald Trump.
'The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,' the chipmaker said.
Nvidia shares jumped in Tuesday trading.Nvidia said it plans to resume sales of its best-selling H20 AI chip to China, days after CEO Jensen Huang met with President Donald Trump.
Shares of Nvidia jumped more than 4% Tuesday following the news. Shares of Advanced Micro Devices (AMD), other chip companies, and Nvidia partners including Super Micro Computer (SMCI) also rose. (Read Investopedia's full coverage of today's trading here.)
"NVIDIA is filing applications to sell the NVIDIA H20 GPU again,' the company said in a blog post late Monday. 'The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,' the chipmaker said.
The green light from Washington marks a big win for Nvidia, as analysts had said the restrictions would send sales in China, a key market, down to "zero." The AI chipmaker said in May that it took a $4.5 billion charge in the fiscal first quarter associated with export curbs imposed by the Trump administration on sales of its H20 products to China. The H20 chips are less powerful than Nvidia's newer ones and had been tailored to meet prior export limits for the Chinese market.
Separately, Nvidia announced a new RTX PRO AI chip that it said was 'fully compliant' for the Chinese market. The White House didn't immediately respond to an Investopedia request for comment.
Nvidia shares entered Tuesday up by more than a fifth this year.
This article has been updated since it was first published to reflect more recent share price values.
Read the original article on Investopedia
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
7 minutes ago
- Business Insider
5 reasons Wall Street is in chill mode
Stock markets are shrugging off major risks and smashing records — so much so that even seasoned investors are scratching their heads. On Friday, the S&P 500 and Nasdaq 100 closed little changed after notching record highs on Thursday. Both indexes are hovering near the all-time highs they reached earlier this month, continuing a rebound after the post-"Liberation Day" sell-off. That rebound has stunned analysts, given the pile-up of macro risks, particularly President Donald Trump's ongoing threats to impose steep tariffs on key trading partners. Yet investors keep piling in — even if many are doing so with one eye on the exit. "In many ways, this is a rally that really no one's had much conviction in it," Andrew Pease, the Asia Pacific head of investments for Russell Investments, told Business Insider. He said the firm's analysis shows investors are neutral, not euphoric. "Everyone's very wary about this particular rally," Pease said. Wall Street veterans have spent months warning that investors may be underestimating the risks. "Unfortunately, I think there is complacency in the markets," JPMorgan Chase's CEO, Jamie Dimon, said earlier in July, referring to tariffs. Those concerns may soon be put to the test. Trump's proposed levies on trading partners — ranging from 10% to 70% — threaten to disrupt supply chains, fuel inflation, and slow global growth. "I think the market is too complacent about the damage of such high tariffs on both the US and the global economy," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. It's not just tariffs that suggest trouble could be brewing. China's economic slowdown, Middle East tensions, and softening US data all suggest trouble could be brewing. So why are stocks still surging? 1. The US economy still looks resilient Despite inflationary concerns tied to Trump's tariff threats, the US economy remains on solid footing. As BI's Jennifer Sor recently reported, recession fears are fading. Big banks kicked off earnings season on a strong note last week. The consumer "basically seems to be fine," JPMorgan's chief financial officer, Jeremy Barnum, said on an earnings call on July 15. That's despite some cracks in the data. US GDP contracted 0.5% in the third quarter, and consumer spending growth slowed to 0.5% in Q1 — down sharply from 4% in Q4 2024. But retail sales rose 0.6% in June from May and the job market remains robust. The US added 147,000 jobs in June, well above expectations, while unemployment dipped to 4.1% from 4.2%. American consumers are, as top CEOs said recently, "a little numb" to tariffs and "very resilient," even as inflation ticks up. 2. Betting on the TACO trade Some investors are leaning on the "TACO trade" — short for "Trump Always Chickens Out." Markets are increasingly assuming that Trump's tariff threats are more talk than action. "Finally, the market is not wrong in pricing in a good chance that Trump will not follow through with his latest tariff threats, instead settling for some deal by 1 August," wrote Davide Oneglia, the director of European and global macro at Global Lombard, on July 16, referring to the trade deadline. Daniela Sabin Hathorn, senior market analyst at agreed: "The prevailing view among investors seems to be that these tariff threats are more bark than bite — a negotiating tactic rather than a firm policy stance." That's created what analysts call "asymmetry:" Markets could keep rising if talks go well, but they are vulnerable to sharp corrections if discussions break down. 3. FOMO + MOMO = a runaway rally Even as risks loom, traders don't want to miss out. That's fueling what analysts describe as a combination of FOMO, or fear of missing out, and MOMO, or momentum-based trading. Retail traders have been jumping back in, chasing gains as indexes push higher, even if they missed the earlier run-up. "MOMO and FOMO" are likely to dominate until proven otherwise," wrote Steve Sosnick, the chief strategist at Interactive Brokers, in a June 30 note. "Newton's First Law applies: A body (market) that is in motion will stay in motion until acted upon by an external source," he added. Sosnick said that implied volatility remains low, even as risks mount, suggesting investors are choosing to look past potential trouble. Pease at Russell Investments agreed that momentum could unravel quickly — but only if there's a clear macro shock. 4. Fed cuts are back on the table The Federal Reserve has signaled it could cut rates another two times this year — a boon for stocks. Lower rates reduce bond yields, making equities more attractive. They also encourage borrowing and investment. But rising inflation could complicate that path. In June, US inflation climbed 2.7% from a year ago, up from 2.4% in May. Dimon warned that the Fed might still hike if inflation proves sticky. He sees a 40% to 50% chance of another increase this cycle. 5. AI continues to power tech gains AI hype continues to drive the market, especially Big Tech. "AI is still the dominant theme, particularly as the Big Tech companies are giving solid earnings guidance and other companies are joining in as well, then that's the world in which you could see that this rally has further to go," Pease said, while cautioning that gains could become overdone. Bank of America's latest global fund manager survey, published July 15, shows 40% of respondents already see productivity gains from AI adoption. Another 21% expect gains within the next year. Caution still lingers Despite the optimism, there's unease under the surface. Summer trading is thinner, meaning volatility can spike quickly. Last year's yen carry trade unwind is a fresh reminder that things can turn fast. Trump's tariff threats are still on the table, but Oneglia thinks markets are right to be relatively unfazed. "Negotiations have not broken down and the market is acting rationally — at least on this," Oneglia wrote. Still, others are more cautious. "Ultimately, markets are at a crossroads," wrote Hathorn. "The rally, particularly in US equities, has been driven by optimism and underpinned by assumptions about political behavior." Until August, market asymmetry remains, so there's "room to rise on good news, but the potential for a swift and severe correction if trade tensions escalate," Hathorn added.
Yahoo
32 minutes ago
- Yahoo
Nvidia and Broadcom: Here's How These Top AI Stocks Are Doing 1 Year After Their Stock Splits
Key Points These leading AI players saw their shares skyrocket in the year prior to their stock splits, with levels reaching beyond $1,000. Nvidia and Broadcom both have reported soaring demand for their products. 10 stocks we like better than Nvidia › Stock splits were a big thing last year, with many major companies across industries launching such operations. Two of the most exciting were in the area of artificial intelligence (AI). Nvidia (NASDAQ: NVDA), the world's No. 1 AI chip designer, and Broadcom (NASDAQ: AVGO), a networking giant, completed stock splits in June and July 2024, respectively. What is a stock split, and why do companies go this route? These operations enable a company to bring down a soaring stock price to more reasonable levels, making the stock more accessible to a broader range of investors. Nvidia and Broadcom even said they decided on splits to make it easier for employees and investors to get in on their shares, which had surged more than 200% and about 100%, respectively, in 2023. Stock splits don't change the total market value of the company or anything fundamental, though. They simply involve offering more shares to current holders according to the ratio of the split. So, for example, in a 10-for-1 stock split, if you originally held one share, you would hold 10 shares post-split -- but the total value of your holding would remain the same. Because of this, a stock split alone isn't a reason to buy or sell a stock. Still, it's interesting to see how stock split players have performed a year after these operations, so let's take a look at both Nvidia and Broadcom a year after their splits. Nvidia Nvidia completed its 10-for-1 stock split on June 7 of last year, with shares trading at the split-adjusted price as of June 10. This brought the shares down from about $1,200 to $120. Since that time, Nvidia stock has experienced ups and downs, but it's delivered a gain of more than 40%. As mentioned, this operation isn't the reason investors have flocked to Nvidia over the past year (though a lower price per share may have made it easier for some to get in on the growth story). What has driven Nvidia's share price performance is the ongoing high demand for its graphics processing units (GPUs), or AI chips, and related products and services. What also helped this AI leader was its strong execution of a big launch: Nvidia released its Blackwell architecture and chip this past winter to demand that CEO Jensen Huang called "insane." The company generated $11 billion in revenue from Blackwell in its very first quarter of commercialization and maintained a gross margin above 70%, ensuring high profitability on sales. Although investors worried about potential headwinds, such as import tariffs or a decrease in AI spending, these concerns have eased. Trade talks have spurred optimism that tariffs may not be as hefty as initially expected, and companies have reiterated their AI investment plans. All of this helped boost Nvidia's shares in recent weeks, even pushing the company to a $4 trillion market cap, making it the first company ever to reach this level. Broadcom Broadcom executed its stock split on July 12, and the stock began trading on July 15 at the new price. Like Nvidia, the company decided on a 10-for-1 split to bring its share price down -- in this case, from about $1,700 to $170. Broadcom stock has also climbed in the double digits since the operation, rising more than 65%. And like Nvidia, Broadcom saw its shares take off thanks to demand from AI customers. This company is a networking leader, making thousands of products used in a variety of locations -- from your smartphone to major data centers. But in recent times, demand from big cloud service providers to support their AI development has helped revenue skyrocket. In the most recent quarter, AI revenue surged 77% to $4.1 billion, and the company says it expects this momentum to continue in the current quarter and through the next fiscal year. This is amid demand for both connectivity products and Broadcom's accelerated processing units (XPUs), a type of processor for specific AI tasks. The company says its networking expertise and wide range of products -- from switches and routers to network interface cards (NICs), which connect computers to networks -- have been key growth drivers as cloud service providers ramp up their AI platforms. Broadcom stock followed a similar path to Nvidia, declining in April of this year due to general tariff concerns, but it has also rebounded and is on the rise today. The stock even closed at a record high just a few days ago. Could the post-split success continue? Both Nvidia and Broadcom have completed successful post-split years, scoring double-digit gains. Nvidia is slightly less expensive from a valuation standpoint than it was a year ago, but Broadcom's valuation has advanced. Still, these AI players remain reasonably priced, considering their earnings track record and long-term prospects in this growth market. It's impossible, of course, to guarantee what these stocks will do next, but the current environment supports the idea of more gains ahead. Even more importantly, Nvidia and Broadcom are well positioned to win in the AI market over the long run. Should you buy stock in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. Nvidia and Broadcom: Here's How These Top AI Stocks Are Doing 1 Year After Their Stock Splits was originally published by The Motley Fool
CNBC
37 minutes ago
- CNBC
CNBC Daily Open: Solid earnings beats might mask tariff volatility these two weeks
Friday, Aug. 1 — the "hard deadline" of U.S. President Donald Trump's updated tariffs — is less than two weeks away. Investors, however, seem mostly unbothered thus far. For last week, while the Dow Jones Industrial Average dipped marginally, the S&P 500 and Nasdaq Composite rose 0.6% and 1.5% respectively. Even a report that Trump wanted a minimum of 15%-20% tariffs on the European Union only dealt a minimal blow to markets, which mostly closed unchanged Friday. Although those figures are higher than the universal 10% baseline tariff Trump reportedly wanted — and which the EU is hoping to secure — they are still lower than the 30% Trump said he will impose on the bloc in his July 12 letter. An upbeat start to earnings season has alsohelped to quell tariff fears for now. Around 83% of the S&P 500 companies that have reported earnings have exceeded expectations, according to FactSet data. In particular, big banks such as JPMorgan Chase and Goldman Sachs, which serve as barometers for economic activity, had solid beats, boosting investor sentiment. Next in the spotlight are Big Tech earnings, which will be released in the weeks right before Aug. better than expected, they might dispel geopolitical jitters — or cause investors to dismiss trade fears too readily. In these stormy times, every silver lining has a dark cloud. Aug. 1 is a 'hard deadline' for new tariffs. U.S. Commerce Secretary Howard Lutnick said Sunday that the tariffs will take effect next month, but left open the possibility of continuing trade negotiations after the date. Trump wants a minimum tariff of 15%-20% on the EU. The Financial Times, which cited three people briefed on trade talks between the U.S. and the bloc, reported the news Friday. The European Union had been hoping for a deal similar to the U.K.'s. Scott Bessent reportedly urged Trump not to fire Jerome Powell. However, the U.S. president denied a Wall Street Journal report that Bessent had warned him about the potential economic, political and legal consequences of dismissing the Federal Reserve Chair. U.S. stock futures are little changed Sunday stateside. On Friday, the S&P 500 and Nasdaq Composite closed around the flatline. The Dow Jones Industrial Average, however, lost 0.32%. The Stoxx Europe 600 was mostly unchanged. [PRO] The Magnificent Seven are due to report earnings. Alphabet and Tesla will announce their second-quarter financial results Wednesday. If they top the results that investors are expecting, markets could receive a boost. '30% is untenable': From Irish whiskey to Italian cheese, Trump's tariff threat rattles EU exporters Along the "last road in Ireland," on the country's rugged west coast, June O'Connell's business Skellig Six18 makes gin and whiskey — a time-intensive process guided by the wind, rain and cool temperatures that roll in year-round off the Atlantic. America was a natural target market once their first spirits were ready to sell in 2019, according to O'Connell, given its strong familiarity with Ireland and big appetite for premium drinks. Her first products left County Kerry in November 2023 for a U.S. launch in early 2024. Then the political tide started turning in the White House.
