Nvidia shares hit a record high of $236.46 after the U.S. government approved sales of H200 chips to China.

Blockchain media outlet BeInCrypto reported on May 14 that the U.S. Commerce Department approved purchases of Nvidia H200 chips by about 10 Chinese companies including Alibaba, Tencent, ByteDance and JD.com.

The move could allow a partial resumption of top-tier AI chip sales in China that had been effectively blocked since export controls in October 2023. Lenovo and Foxconn received approval as distributors. For Nvidia, it means the possibility that the China market, worth about $8 billion a year, could reopen.

The market reaction was immediate. Investors pushed the stock higher, viewing a recovery in Chinese demand as the final variable for expanding Nvidia's data center business. Before export controls, China accounted for nearly a quarter of Nvidia's total revenue. Revenue from that market later fell to near zero.

There is still time needed between approval and revenue recognition. Physical shipments have not yet taken place. That is because Chinese authorities are reviewing domestic transactions. Ultimately, the pace of Beijing's approval will determine when the U.S. policy shift translates into actual revenue.

Nvidia's valuation also swelled rapidly. Its market capitalisation rose to $5.52 trillion, overtaking silver to rank as the second-largest asset in the world. The company's value exceeded the gross domestic product of every country except the United States and China. Alphabet followed at a gap of about 4 percent below the $5 trillion level.

Expectations of easing U.S.-China relations also underpinned the policy change. Nvidia Chief Executive Jensen Huang (젠슨 황) described U.S. President Donald Trump's summit with China's leader as "one of the most important things in human history." The U.S. Commerce Department's approved buyers included Alibaba, ByteDance, Tencent and JD.com, and Lenovo and Foxconn were also authorised as distribution channels.

The remaining variable is when the first H200 shipments begin. Even if Washington's regulatory easing is confirmed, actual supply is possible only after China's review is completed. That has become the next point to watch, including when Nvidia's data center revenue will again reflect Chinese demand and whether demand for AI hardware will continue to underpin rising valuations for tech stocks.