Shares of NVIDIA Corporation (NASDAQ: NVDA) climbed 3% as the broader tech sector showed signs of recovery, driven by capital investment news from Meta (NASDAQ: META) and Microsoft (NASDAQ: MSFT), along with fresh reports of Nvidia’s efforts to adjust its chip designs to meet U.S. export rules targeting China.
The stock’s rise came after a report from The Information revealed that Nvidia has been in discussions with major Chinese clients—including ByteDance, Alibaba (NYSE: BABA), and Tencent Holdings (OTC: TCEHY)—to redesign its artificial intelligence chips in line with U.S. export restrictions, according to sources familiar with the plans.
CEO Jensen Huang reportedly outlined Nvidia’s updated strategy during a recent trip to Beijing, which followed the U.S. government’s decision to tighten restrictions on AI chip exports to China. This move affected Nvidia’s H20 chip—the company’s top AI chip that had previously been cleared for export. The new restrictions forced Nvidia to prepare for a $5.5 billion write-down for the quarter ending in April, which initially weighed on its stock price.
However, Nvidia’s proactive steps to stay compliant with export rules and retain access to the Chinese market seem to have reassured investors, contributing to the stock’s latest gains.
