NVIDIA Stock Gains as the U.S. Reviews AI Chip Sales to China
In Focus
- U.S. lawmakers have expressed concerns about selling AI chips to China
- The AI chip sales review could result in initial shipments of H200 processors to China
- The final decision about chip export rests with President Trump
NVIDIA stock gained 1.4% in premarket trading on December 19, 2025, following reports that the U.S. government is reviewing the company’s AI chip sales to China. According to Yahoo Finance, the U.S. review of NVIDIA AI chip sales to China could result in initial shipments of H200 processors to the Asian country.
Commitment to Sell H200 Chips to China
Last month, President Donald Trump said he would allow NVIDIA to sell its H200 chips to China. The U.S. government would receive a 25% levy from such sales. The move would also lower demand for locally produced chips and keep American firms ahead of their Chinese counterparts.
Though slower than the Blackwell chips, H200 chips are widely used in the AI industry and have never been approved for export to China. In recent years, the U.S. government has thwarted multiple attempts to ship NVIDIA AI chips to China illegally.
The U.S. government is reviewing NVIDIA H200 export days after the chipmaker informed its customers that it was exploring possibilities of expanding production of the processors as AI chip demand in China soars.
NVIDIA License Applications are Under Review
Sources close to the matter say the U.S. Commerce Department has already submitted export license applications to the Defense, Energy, and State Departments for review. The Commerce Department is responsible for export policy.
According to the U.S. technology export rules, these agencies have 30 days to provide feedback. Despite the review, the final decision still rests with President Trump as per the rules.
“The Trump administration is committed to ensuring the dominance of the American tech stack, without compromising on national security,” A White House spokesperson stated as per Yahoo Finance.
Despite this progress, concerns over how fast the government would approve AI chip sales have emerged. Questions on whether Chinese authorities would allow local companies to buy NVIDIA chips have also been raised.
National Security Concerns Emerge
NVIDIA AI chips export to China has raised national security concerns across the political divide. Lawmakers have expressed concern that selling AI chips to China could strengthen its military and weaken America’s leadership in artificial intelligence. Earlier this month, NVIDIA developed chip verification technology that could prevent smuggling of its AI semiconductors to countries where export bans remain in force.
Officials who served under the Biden administration, which had restricted the sale of AI Chips to China over national security fears, also weighed in on the matter. Former White House National Security Council Chris McGuire said exporting huge volumes of advanced AI chips to China would be a “significant strategic mistake.”
“I cannot possibly fathom how the departments of Commerce, State, Energy, and Defense could certify that exporting these chips to China is in the U.S. national security interest,” McGuire said as stated by Yahoo Finance.
According to McGuire, AI semiconductors are the only thing that’s holding China back in the AI race.
