NVIDIA Corporation (NASDAQ:NVDA) is one of the best US stocks to buy according to Billionaires. On July 14, NVIDIA announced its intention to resume sales of its H20 AI chip to China. The reversal comes after NVIDIA CEO Jensen Huang met with President Donald Trump at the White House last week. Huang has consistently argued that restricting American technology sales to China could jeopardize the US’s leadership in AI and has also stated that previous restrictions led to billions of dollars in lost revenue for the company.
Following NVIDIA’s announcement, Advanced Micro Devices Inc. (NASDAQ:AMD) also stated on July 15 that it plans to restart sales of its MI308 AI chips to China. Both companies received assurances from the US government that license applications for these exports will be approved, allowing for deliveries to commence soon. The White House has not yet officially commented on these developments.
A close-up of discrete semiconductors in a manufacturing lab.
The resumption of AI chip sales to China is part of a broader trade agreement between the US and China. This deal involves lowering tariffs between the two countries and specifically includes China increasing rare earth shipments to the US. In exchange for these resources, the US agreed to lift export curbs on microchip designing software, ethane, and jet engines.
While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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