US Relaxes AI Chip Export Curbs for China

The Trump administration has reversed its export ban, allowing Nvidia to resume sales of its advanced H20 AI chips to China and enabling AMD to anticipate renewed exports of its MI308 chips. This decision has triggered a surge in both companies' shares and is expected to benefit related firms such as GDS Holdings, amid strong demand for AI technology in China. Nvidia remains a top pick among analysts due to its robust return on equity and leading industry position, while the broader semiconductor sector is expected to see growth as AI use cases expand globally. Despite concerns about potential overvaluation, optimism persists for tech stocks, with mutual funds and prominent analysts favoring Nvidia and its peers. Additionally, Chamath Palihapitiya’s former SPACs, including Opendoor and SoFi, have outperformed Nvidia in year-to-date returns, reflecting evolving investor sentiment. The developments underscore the significance of AI chip access and the shifting landscape of U.S.-China tech and trade relations.