Nvidia shares surged over 3% at the US market open on July 15, propelled by news of imminent H20 chip sales resumption to China. The rally added nearly $200 billion to its market valuation, eclipsing more than half of rival AMD's total market capitalization and solidifying Nvidia's position above the $4 trillion threshold. Notably, AMD stock simultaneously jumped over 7%, reaching approximately $250 billion in market value.
During his Beijing visit, CEO Jensen Huang confirmed Nvidia secured US government assurances and submitted H20 chip licensing applications, pledging swift market re-entry. "China's vast, vibrant innovation ecosystem and concentration of AI researchers make market presence crucial for US firms," Huang emphasized. The announcement follows Nvidia's disclosure of $8 billion in losses from previous H20 restrictions in its latest earnings report.
Market analysts cautioned that lingering US-China uncertainties persist despite the breakthrough. Intensifying competition looms from Chinese tech heavyweight Huawei and other AI inference chip manufacturers. Omdia Semiconductor Research Director He Hui noted: "Chinese enterprises will continue diversifying supply sources to enhance security and maintain operational flexibility."
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.