Nvidia stocks up 18.72% as Trump retreats from H20 chip ban after dinner with Jensen Huang

Shares of chipmaker Nvidia spiked up 18.72% at $114.33 on Wednesday as the Trump administration has reportedly reversed its decision to impose restrictions on Nvidia’s H20 artificial intelligence chip exports to China.

The move came following a private dinner with the company’s CEO, Jensen Huang, at Mar-a-Lago last week, NPR reported Wednesday.

Nvidia shares dropped 1.53% to $112.58 in after-hours trading, as investor sentiment has been weighed down by fears of AI market saturation and tighter regulations.

Back on super-billionaire's list

On Thursday (April 10), Huang is back on the super billionaire's list, after a $15.5-billion jump in his wealth to $100.1 billion, as per Forbes' Real-time Billionaires List.

The H20 chip is Nvidia’s most advanced AI processor that can still legally be sold in China under current US export rules.

Plans to tighten those rules had been in motion for months and were nearly finalised, NPR said, citing two sources familiar with the matter.

White House backs off

However, the administration backed off after Nvidia reportedly committed to new US investments in AI data centers.

The White House and Nvidia have not publicly commented on the reversal, as per Reuters.

Earlier this year, the Trump administration signalled intentions to crack down on the export of H20 chips, a policy proposal that actually began under former President Joe Biden.

The shift in stance comes amid mounting pressure from lawmakers — including Republican John Moolenaar and Democrat Raja Krishnamoorthi — who in January pushed for tighter controls on AI chip sales to China.

Chip demand up

Chinese demand for Nvidia’s H20 chips has surged in 2024.

ByteDance, Alibaba, Tencent, and other tech giants placed orders worth at least $16 billion in the first quarter alone, The Information reported last week. The strong demand is fueled by the rise of cost-efficient AI models from Chinese startup DeepSeek.

Despite this commercial success, Nvidia’s stock has faced turbulence.

Huang, once a major winner in the AI stock boom, has seen his net worth shrink abot $30 billion this year.

He remains the 15th-richest person in the world, according to Forbes.

While down from his $130 billion peak in November, Huang is still far wealthier than he was two years ago, when his net worth hovered around $25 billion.

President Trump’s broader tariff-driven policies have contributed to market volatility, further complicating the landscape for US tech giants navigating the AI arms race with China.