President Trump announced that Nvidia can sell its H200 AI chips to approved customers in China, with the U.S. taking a 25% revenue cut. This decision follows a tentative trade agreement with Chinese President Xi Jinping, aimed at boosting American jobs and manufacturing. Nvidia and AMD previously agreed to share 15% of their revenue from chip sales in China with the U.S. government.

The Trump administration plans to eliminate the Biden-era "AI diffusion rule," which imposed restrictions on the export of American technology. This move is seen as beneficial for chipmakers like Nvidia, who argued that the rule would complicate international sales. Following the announcement, Nvidia's stock experienced a notable increase.

The Trump administration has halted its plans to restrict exports of Nvidia's H20 artificial intelligence chips to China following a dinner with CEO Jensen Huang at Mar-a-Lago. The decision comes after Nvidia pledged new U.S. investments in AI data centers, while Chinese companies have already placed significant orders for these advanced chips.