Nvidia and AMD stocks rise as US lifts AI export restrictions to China

Curbs on the export of Nvidia’s H20 AI chips and AMD’s MI308 accelerators have been removed

The US is lifting sanctions on some AI chip exports to China as part of broader trade negotiations including discussions on rare earth elements and export controls.

So far, the main US beneficiaries of the move have been Nvidia and AMD, with restrictions on the export of Nvidia’s H20 AI chips and AMD’s MI308 accelerators revoked. Both are less powerful versions of the top-end products, which remain restricted, but they are extremely popular among AI developers in China, with tech giants ByteDance and Tencent among those already applying for for H20 chips, according to Reuters.

The move will significantly boost the US AI chip market as vendors regain access to the Chinese market. Nvidia expects to recoup $15 billion in revenue this year from H20 chip sales that had been on hold.

Access to Nvidia’s H20 GPUs and AMD’s MI308 accelerators will enhance China’s ability to develop and train advanced AI models. Speaking in Beijing this week, Nvidia CEO Jensen Huang described models produced by DeepSeek, Alibaba and Tencent as "world class."

Some critics in the US have warned that easing export controls could reduce the US’s technological edge and enable China to compete more effectively in AI. Nevertheless, China has already demonstrated its ability to optimise less powerful chips, such as in the creation of DeepSeek’s R1 model, suggesting that restrictions may not be effective an strategy long term.

Share prices of AMD and Nvidia rose by 7% and 5% respectively following the announcements.

Earlier this month Nvidia became the first ever $4 trillion company.