1. Nvidia Shares Soar After Policy U-Turn
Nvidia shares jumped 18.72% on news that former U.S. President Donald Trump has backtracked on a plan to ban the firm’s H20 AI chips. The change came just days after a private dinner at Mar-a-Lago with Nvidia CEO Jensen Huang, which is likely to herald a thaw in the tech-policy environment.
2. The Dinner That Changed the Game
Sources with knowledge of the situation said that Trump and Huang had lengthy conversations over dinner in which the chief of Nvidia illustrated the strategic relevance of the H20 chips for the U.S. AI industry. The result was a dramatic but welcome switch from Trump, who had previously called for increased controls on exports of AI tech amid escalating world tensions.
3. AI Chip Export Restrictions ‘Pulled Back’
The U.S. initially set out to restrict AI chip exports, specifically to Asian countries, in the name of national security. But after Huang’s feedback, Trump apparently chose to “pull back” from the ban, recognizing the economic and innovation losses such actions would cause.
4. Market Reaction and Industry Implications
Investors reacted positively, sending Nvidia’s stock to historic highs. Analysts say that this about-turn will also normalize tech ties with global partners and push more innovation in AI technology. The dinner diplomacy has not only brought Nvidia’s future back on track but also kindled expectations of a more technology-friendly policy orientation.
