Nvidia (NASDAQ: NVDA) shares rose 2. 3% in after-hours trading Monday following reports that President Donald Trump posted on Truth Social that the U. S. government will permit Nvidia to export its new H200 artificial intelligence (AI) chips to selected customers in China. Nvidia must pay the government 25% of its revenue from sales of these chips to Chinese buyers. Trump reportedly mentioned that this arrangement allowing AI chip exports to China would also extend to Nvidia’s competitors, including Advanced Micro Devices (AMD) and Intel. While the 25% revenue share is substantial, Nvidia’s strong profit margins suggest it can afford this cut and still earn significant profits on these chips. For investors, generating some profit from data center AI chip sales in China is preferable to having no sales there at all. The H200 is Nvidia’s latest data center AI chip tailored for the Chinese market. The H200 represents an upgrade over Nvidia’s previous China-specific AI chip, the H20, offering greater power. However, it is less powerful than Nvidia’s Blackwell architecture-based GPUs, which serve customers in the U. S. and allied countries. Earlier this year, U. S.

export controls restricted Nvidia from selling the H20 chip to China, citing national security concerns. In August, the Trump administration reversed course by announcing it would start issuing licenses for Nvidia to sell the H20 to select Chinese customers, with Nvidia giving the government a 15% cut of the related revenue. Despite this, reports indicate that the Chinese government instructed local companies not to purchase the H20 chip, resulting in minimal to no sales for Nvidia over recent quarters. It is uncertain whether China will impose similar restrictions on the H200. However, given that the H200 is significantly more powerful than the H20 and reportedly outperforms Chinese-made AI chips, it may be difficult for China to resist acquiring it. Today's Change: -0. 27% ($-0. 50) Current Price: $185. 05 Key Data Points: - Market Cap: $450. 9B - Day's Range: $183. 33 - $185. 71 - 52-Week Range: $86. 62 - $212. 19 - Volume: 4M - Average Volume: 191M - Gross Margin: 70. 05% - Dividend Yield: 0. 02% Positive Outlook for Nvidia and Its Investors Initial reactions to the H200 export news suggest controversy, with concerns expressed about China gaining access to more advanced AI chips. Nevertheless, for Nvidia and its shareholders, this development is promising. Nvidia is expected to see increased revenue and profits in upcoming quarterly results, provided the Chinese government does not discourage local companies from purchasing the H200 chip.