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Takeaways
- NPR reported on Wednesday that the White House has suspended plans to limit sales of Nvidia chips to Chinese companies.
- According to the report, CEO Jensen Huang was at a dinner last week at Mar-a-Lago, where President Trump appeared.
- The H20 chip is less powerful than Nvidia's latest tech, and is tailored to meet existing export restrictions.
- Nvidia shares surged amid a broader market rally Wednesday after Trump announced a 90-day pause on most of the tariffs his administration announced last week.
NPR reported on Wednesday that the Trump administration has halted plans to tighten up restrictions on sales of Nvidia (NVDA)’s H20 chip to Chinese companies.
The H20 chip is less powerful than Nvidia’s latest chips, and is designed to comply with existing U.S. import restrictions. The White House considered limiting Nvidia’s ability to sell its chip in China. But those plans have been put on hold since CEO Jensen Huang’s attendance at a dinner held last week at Mar-a-Lago where President Trump was present, according the report.
Nvidia declined comment on the report while the Commerce Department didn’t immediately respond to an inquiry for comment.
Nvidia shares soared over 18% Wednesday amid a broader market rally after Trump announced a 90-day pause on most of the tariffs his administration announced last week. Trump stated that the pause is necessary in a Truth Social blog post because “more 75 countries” contacted his administration about making trade deals. The pause was not extended to China, whose tariffs on goods are now 125%. (Read Investopedia’s live coverage of today’s market action here.)
