Key Points
- NVIDIA’s stock rose 3.6% following news of a government review regarding China’s exports.
- The Trump administration is considering a 25% fee on advanced chip sales to China.
- US antitrust regulators officially approved Nvidia’s $5 billion investment in Intel.
- Security experts warn that selling high-end AI chips to China could hurt the US tech lead.
Nvidia shares climbed 3.6% on Friday as two major pieces of news gave investors a reason to buy. First, reports surfaced that the Trump administration is moving forward with a plan to review Nvidia’s exports of the H200 chip to China. Second, federal regulators approved Nvidia’s $5 billion investment in Intel. These moves helped push the world’s most valuable company toward a winning week.
The export news aligns with a specific promise from President Trump. He previously suggested that he would allow Nvidia to sell its most advanced AI chips to Chinese customers, provided the company pays a 25% fee directly to the US government.
To start this process, the US Commerce Department sent license applications to the State, Energy, and Defense departments. These agencies now have 30 days to weigh in on whether selling these chips poses a risk to the country.
Nvidia has spent months seeking permission to re-enter the Chinese market. China accounts for a significant share of global demand for high-end tech, and re-entering that market would boost Nvidia’s bottom line.
However, the plan still faces pushback. Some security experts claim that sharing top-tier AI hardware could help China close the technology gap with the United States.
There is also the question of whether China actually wants the chips. Last year, the administration banned and then unbanned certain Nvidia products. In response, Beijing instructed its tech firms to avoid buying American chips to protect its interests.
Beyond the China trade news, the Federal Trade Commission (FTC) approved Nvidia’s $5 billion investment in Intel. This news sent Intel shares up 1% and helped Nvidia reach its session high.
The positive vibes spread across the entire semiconductor sector. Advanced Micro Devices (AMD) surged more than 6.5%, while Broadcom rose 3%. Micron also continued its recent hot streak, jumping another 7% after a strong earnings report earlier in the week. Overall, the market seems to believe that lighter trade restrictions and big investments will fuel the next stage of the AI boom.
