The Trump administration has begun an internal government review that may allow Nvidia (NASDAQ:NVDA) to resume shipping its advanced H200 artificial-intelligence chips to China, according to a Reuters report published Thursday, citing people familiar with the process.

Nvidia’s shares gained 1.3% in premarket trading on Friday, rising by 04:23 ET, as investors reacted to the potential policy shift.

President Donald Trump has previously indicated his willingness to permit sales of the H200 chips — Nvidia’s second-most powerful AI processors — provided the US government collects a 25% fee on the transactions. Administration officials argue that allowing controlled exports would help US companies retain a technological edge by reducing China’s incentive to accelerate domestic chip development.

As part of the process, the US Commerce Department has distributed export license applications to the State, Energy and Defense departments, triggering a 30-day inter-agency consultation under existing export control rules. If the agencies are unable to reach a consensus, the final determination would be made by President Trump, according to the report.

The possible reopening of chip sales has sparked opposition from China hawks in Washington, who caution that advanced AI processors could bolster China’s military and strategic capabilities. Reuters has previously reported that Nvidia had been exploring an increase in H200 production after initial demand from Chinese customers exceeded available supply.

Nvidia stock price

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