The Trump administration's decision to allow Nvidia's H20 chips back into China has triggered a surge of urgent orders from major Chinese cloud providers, reviving not only Nvidia's outlook but also lifting sentiment across the AI semiconductor ecosystem.

Nvidia Corp. boss Jensen Huang anticipates getting the first batch of US licenses to export H20 AI chips to China soon, formally allowing the company to resume sales of a much sought-after component to the world’s top semiconductor arena.

Nvidia has told its Chinese customers it has limited supplies of H20 chips, the most powerful AI chip it had been allowed to sell to China under U.S. export restrictions, and that it doesn't plan to restart production,

Nvidia's AI chip sales in China boost near-term outlook, but geopolitical risks cast doubts on long-term growth. Click to read more on NVDA's Hold rating.

The Commerce Department allows Nvidia to sell H20 AI chips to China despite security concerns, and experts are divided on the U.S. technological advantage.