Last night, Nvidia Corp (NASDAQ: NVDA) shares rallied to a new all-time high. 

Nvidia reached $172.40 for the first time. In a remarkable turnaround, the US-listed stock has almost doubled since its April low of $86.63. 

The chip maker faced a myriad of challenges during the first half of 2025. First, it fell nearly 20% in one day as Chinese start-up AI company Deepseek arrived on the scene. Then, Trump's tariffs arrived, sending shock waves through the US technology sector. 

Finally, Nvidia received news that the company would be restricted from selling its advanced H20 computer chips to China. These chips had been designed during the Biden administration to specifically comply with existing regulations. This led to Nvidia writing off US$5.5 billion in inventory. 

However, yesterday, Nvidia shareholders received some good news. 

After meeting with US President Donald Trump, Nvidia CEO Jensen Huang said the company had received approval to sell its advanced chips to China again.

According to The Guardian, Huang announced to reporters:

Today, I'm announcing that the US government has approved for us filing licenses to start shipping H20s. 

Nvidia has been a major beneficiary of the widespread adoption of AI. Last week, it became the first company in history to reach a market capitalisation of US$4 trillion. 

News of the reversal of this US policy sent the stock 4% higher last night, even as the S&P 500 Index (SP: .INX) fell 0.4% after US inflation ticked up 0.3% in June from the prior month. 

According to Bloomberg, allowing China to sell to China would generate billions of dollars in revenue, potentially sending the stock much higher. 

Which ASX ETFs could benefit?

Several ASX exchange-traded funds (ETFs) with high allocations to Nvidia could materially benefit from this development. 

The GLOBAL X FANG+ ETF contains 10 equally weighted stocks from the US technology sector, including Nvidia. That means around 10% of the ETF is in Nvidia shares. The FANG ETF has been one of the best-performing ASX ETFs over the past five years, rising 158%. 

The BETASHARES NASDAQ 100 ETF comprises the 100 largest non-financial stocks listed on the Nasdaq. Unlike the FANG ETF, the NDQ ETF is market capitalisation weighted. Therefore, although this ETF contains significantly more stocks (100 compared to 10 for the FANG ETF), 9% of the fund was allocated to Nvidia as of 30 June due to its size. The NDQ ETF is up 105% in 5 years. 

Finally, the ISHARES S&P 500 ETF/AUS tracks the S&P 500 Index. Like the NDQ ETF, it is market capitalisation weighted. As of 30 June, 7% of the fund was allocated to Nvidia. The IVV ETF is up 108% over the past five years.