Nvidia CEO Jensen Huang announced that the company has received approval from the Trump administration to resume sales of its H20 artificial intelligence chips to China.

In a blog post late Monday, Nvidia stated that the U.S. government had “assured" it that licenses would be granted and the company “hopes to start deliveries soon.” Following the announcement, Nvidia shares rose over 4% by midday Tuesday.

Huang, currently in Beijing for a supply chain conference, also confirmed the development on China’s CGTN. “Today, I'm announcing that the U.S. government has approved for us filing licenses to start shipping H20s,” he said. Emphasizing China’s role in AI, Huang added, “It's so innovative and dynamic here in China that it's really important that American companies are able to compete and serve the market here.”

The H20 chip is a GPU designed to comply with U.S. export restrictions, and while less powerful than Nvidia's top-tier chips, it enables AI development. The Biden administration initially imposed restrictions on advanced chip exports, citing national security, a policy Trump continued in his second term.

Samsung electronics eyes turnaround in HBM segment amid AI surge

Huang recently met President Trump, whose administration reversed the H20 ban in what Commerce Secretary Howard Lutnick said was linked to a trade deal on rare earth magnets. Nvidia had warned the earlier restrictions could cost the firm $5.5 billion.

Lawmakers remain concerned. Last week, Senators Elizabeth Warren and Jim Banks urged further tracking of chip exports to prevent military use. AMD, facing similar curbs, also expects to resume sales of its MI308 chips as licenses are processed.