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Nvidia Breakthrough Sparks Semiconductor Stock Rally
15 Jul
Summary
- Nvidia shares jump 4% on potential China sales return
- Nvidia CEO meets with Trump, Chinese officials on AI
- Analysts call Nvidia's China move a "watershed moment"
On Tuesday, semiconductor stocks rallied after Nvidia (NASDAQ:NVDA) received a major breakthrough. Nvidia shares jumped about 4% after the company said it may resume sales of its H20 GPUs in China, following recent U.S. government signals that export licenses will be granted.
The rally extended to other semiconductor companies, with Advanced Micro Devices (NASDAQ:AMD) surging more than 6%, Broadcom (NASDAQ:AVGO) climbing about 2%, Qualcomm (QCOM) adding roughly 1%, and Micron Technology (NASDAQ:MU) gaining around 2%.
Nvidia CEO Jensen Huang also unveiled the RTX PRO, a compliance-ready GPU aimed at smart factories and logistics. Huang met with President Donald Trump to discuss U.S. job creation and AI leadership, and then held talks with Chinese officials on safe AI collaboration.
Analysts were quick to applaud the developments. Wedbush called the potential H20 chip return a "watershed moment" for Nvidia, the AI Revolution thesis, and the overall U.S. tech industry. Wells Fargo noted that renewed China sales may boost demand for AMD and MU as well.
