Nvidia shares jump 5% in pre-market trade as U.S. allows AI chip sales to China; AMD rises 3%

Shares of AI chipmaking giant Nvidia surged over 5% in pre-market trading on Tuesday, indicating a strong open, following reports that the U.S. government has approved the resumption of exports of the company’s H20 AI chips to China.

Cheering the news, Nasdaq-listed Nvidia shares jumped as much as $8.74, or 5.3%, in pre-market trade to $172.75 apiece. On Monday, shares of Nvidia—the world’s most valuable stock—ended at $164.07, down 0.52%, with a market capitalisation of $4.001 trillion.

In a similar trend, Advanced Micro Devices (AMD) shares surged $5, or 3.46%, in pre-market trade to $151.30.

The development boosted sentiment across the semiconductor sector, with AI-related stocks Broadcom Inc. and Super Micro Computer (SMCI) edging higher in pre-market trade.

The resumption of H20 shipments could unlock a critical revenue stream for Nvidia, which has already registered massive gains in 2025 on the back of the global AI boom. The blue-chip stock has risen nearly 19% in the calendar year 2025, while it added nearly 28% over the past year. In the past month, shares of Nvidia have surged over 13%, propelling the company’s market capitalisation past the $4 trillion mark for the first time.

The stock gained momentum today after Nvidia’s CEO Jensen Huang said that the semiconductor major has received clearance from the Donald Trump administration to ship its advanced H20 artificial intelligence chips to China—a major breakthrough for the company as it finds itself in the midst of an intense U.S.-China competition over AI and tech.

In a company blog, Chief Executive Officer Jensen Huang stated that the U.S. government has agreed to grant export licenses for the H20 chips, which are tailored for AI workloads. Huang, who is currently visiting Beijing for a supply chain conference, also made the announcement in an interview aired on China’s state-run CGTN.

The H20 chip, a modified version of Nvidia’s high-performance processors designed to comply with U.S. export rules, had been caught in a regulatory bind after the Biden administration in April imposed fresh restrictions on the sale of advanced semiconductors—including Nvidia’s H20 and AMD’s MI308—to China. The company had warned investors that the curbs could cost it up to $5.5 billion in lost revenue.

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