US Reviews Nvidia AI Chip Sales to China

This article first appeared on GuruFocus.

Washington is once again putting Nvidia (NASDAQ:NVDA) at the center of the U.S. China tech standoff. The Trump administration has launched a formal review that could determine whether Nvidia is allowed to ship its H200 AI chips, its second most powerful model, to Chinese customers, according to Reuters.

Earlier this month, President Donald Trump said he was open to allowing the sales under a new setup that would include a 25% fee paid to the U.S. government. His argument was that controlled exports could actually help U.S. firms stay ahead by reducing reliance on Chinese made chips. That idea is now being tested inside the government.

The Commerce Department has sent license applications to the State, Energy, and Defense Departments, which have 30 days to weigh in under export rules. An administration official said the review will be detailed and not a rubber stamp. Even so, the final decision ultimately sits with Trump.

For investors, the situation highlights how sensitive Nvidia’s China exposure remains. Approval could unlock incremental revenue, but a rejection would underline just how unpredictable access to that market can be.