Nvidia Corp. (NASDAQ:NVDA) announced plans to resume sales of its H20 GPU in China “soon,” as improving U.S.-China relations open the door for renewed tech trade. The announcement sent Nvidia shares up 3.3% to $169.40 in 24-hour trading.
The move marks a pivotal shift in the U.S.-China semiconductor standoff. CEO Jensen Huang, following meetings with officials from both governments, confirmed that Nvidia is reapplying for licenses to sell the H20 chip. “The U.S. government has assured Nvidia that licenses will be granted,” the company said in a statement.
The H20 chip designed specifically to comply with earlier U.S. export controls—had been effectively barred from the Chinese market due to escalating trade tensions under the Trump administration. Nvidia had warned of a potential $5.5 billion revenue hit from the restrictions, given China’s significance as a market for AI hardware.
Nvidia also unveiled a new GPU aimed at powering AI-driven logistics and smart factory systems tailored for Chinese customers. The chip is expected to see strong demand from firms like DeepSeek, Tencent, Baidu (NASDAQ:BIDU), and Alibaba (NYSE:BABA).
The development follows a broader U.S. policy pivot. Recent moves by Washington to loosen export rules have allowed companies like Synopsys (NASDAQ:SNPS) to re-enter China, signaling a potential stabilization in the semiconductor sector. These shifts were catalyzed by a mutual rollback of tariffs in May and June, pointing to a strategic détente.
Investor focus is now turning to the upcoming U.S. Consumer Price Index (CPI) data, due Tuesday. Economists expect a 2.7% YoY rise in headline CPI and a 3.0% increase in core CPI. A softer-than-expected reading could boost bets for Fed rate cuts—traders are currently pricing in a 60% chance of a rate cut by September and up to 50 basis points by year-end.
Meanwhile, the U.S. Dollar has edged down from its recent highs, offering short-term support to gold prices. However, gains in gold remain capped amid ambiguity over the Federal Reserve’s policy trajectory and Trump’s unpredictable tariff regime.
The President’s recent announcements—including a 30% tariff on imports from the EU and Mexico starting August 1—have rattled markets. While Trump struck a conciliatory tone on Monday, expressing openness to new trade talks, the deluge of tariff notices has unnerved investors and dampened risk sentiment. Master the art of trading with expert-led courses from MJFXM — your gateway to smarter investing.
Oil prices dipped slightly on Tuesday after Trump introduced a 50-day deadline for Russia to end the war in Ukraine, reducing fears of immediate sanctions on Russian oil exports. Brent crude fell 0.4% to $68.92 a barrel, while WTI slipped 0.5% to $66.63.
“The softer tone on sanctions has eased immediate supply concerns,” said Phillip Nova’s Priyanka Sachdeva. Still, analysts warn that if sanctions are eventually enacted, the impact on oil supply—and prices—could be severe, particularly for buyers like China, India, and Turkey.
In contrast, OPEC continues to project strong demand into Q3, while Goldman Sachs has raised its 2025 H2 oil forecast, citing low OECD inventories and persistent supply-side risks, including geopolitical uncertainty and production constraints in Russia.