Nvidia rallies, leading market, on resumed H20 AI chip exports to China
INNOVATIONFEATURED


Shares in Nvidia rallied sharply Tuesday morning, helping boost the entire market, after the company said the U.S. government will again allow it to ship powerful AI chips to China.
Why it matters: The export ban cost the company more than $10 billion in revenue, CEO Jensen Huang has said previously, so the reversal will come as a huge boon to its bottom line.
By the numbers: Shares in Nvidia rose more than 5% in pre-market trading on Tuesday.
Given Nvidia's outsized importance across financial markets in recent years, that rally gave stocks a broad tailwind, with Nasdaq futures 0.6% higher.
Last week, Nvidia became the world's first $4 trillion company. Since the market bottom in early April, the stock has dramatically outperformed.
What they're saying: The company, in a blog post published Monday, said "NVIDIA is filing applications to sell the NVIDIA H20 GPU again. The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon."
What to watch: How soon those licenses are approved, and when it shows up in the company's bottom line.
Its current fiscal quarter ends this month, so any revenue benefit is more likely to show up in next quarter's results at the earliest.
Source: Axios