In today’s political climate, you don’t need a war chest of lobbyists or a 1,000-page white paper to keep your chips flowing across the Pacific. No, all you need is an invite to Mar-a-Lago and a well-timed steak dinner with the most powerful man in the room.

(Source: Giphy) 

According to NPR, the Trump administration has quietly hit the brakes on its plan to restrict exports of Nvidia’s H20 AI chips to China. Whaaaa?? Yes, my thoughts exactly. So what changed here? CEO Jensen Huang showed up for dinner at Trump’s Florida Xanadu last week. And like magic, the crackdown vanished faster than Wall Street Bets put options on Obi Huang Kenobi. 

For starters, the H20 chip is Nvidia’s China-safe special. Said another way, it’s a dialed-down AI processor engineered to skirt the U.S. government’s export controls. Not top-shelf, but not bottom-of-the-barrel either. Think: the Grey Goose of chips served in a Solo cup. And it’s been flying off the metaphorical shelves. Chinese firms like ByteDance, Tencent, and Alibaba reportedly ordered $16 billion worth of the stuff in Q1 alone.

(Source: Yahoo Finance) 

But apparently, that was starting to make D.C. nervous. There were whispers, some public, some not—about tightening the leash. Lawmakers on both sides of the aisle had been calling for more restrictions since January. Meanwhile, the Commerce Department was sharpening its pencils for a crackdown that was supposed to drop this week. But then… the man, the myth, the legend, Jensen Huang, showed up for dinner. 

Now in no way, shape or form, am I saying that a filet mignon got Nvidia off the hook. But according to NPR, the administration reversed course after Huang made his Mar-a-Lago appearance and—wait for it—promised fresh U.S. investments in AI data centers. So yes, it’s looking like Nvidia traded a juicy steak and a few billion in domestic CAPEX for continued access to China’s $16 billion AI shopping cart.

(Source: Investopedia) 

Of course, Wall Street loved it. Nvidia shares ripped 18% Wednesday, riding the wave of a broader market rally sparked by Trump’s 90-day tariff pause (which, not-so-coincidentally, excludes China). Now one could say this is all about national security or protecting American IP. Which is valid, and to some extent, yes it is. But really, this is all about Trump’s favorite daily activity to take part in, deal-making, plain and simple. This is how the game gets played now. You want export clearance? Show up to dinner. Smile. Shake hands. Mention domestic infrastructure a couple of times. Maybe promise a new data center in Pennsylvania. Boom, all is well, and your chips are back on the boat to Shenzhen. 

For Nvidia, this is a huge win as they’re selling watered-down silicon to China while still sitting on the Iron Throne of America’s most valuable tech company (sup, Tim Cook). Nvidia is pledging U.S. investment while raking in overseas cash. And now they’ve got a direct line to the most tariff-happy administration in recent memory. 

(Source: Giphy) 

In the end, this is just another example that despite all tensions, everything is negotiable— especially if you’re holding the keys to the world’s AI future and your stock ticker moves the market like a central bank press release (Perhaps the next time Trump and Xi talk, Xi should phone a friend… with that friend being Jensen Huang LOL). 

For now, Nvidia is still selling to China. The crackdown got shelved. And the steak was medium-rare. And if you’re wondering who’s really winning in this new world we’re living in—it’s none other than the former Denny’s waiter, because of course it is. Until next time, friends… 

P.S. The markets played a better rendition of “Eruption” than Eddie Van Halen yesterday, and everyone and their mom was in the mix. However, it was the Stocks.News premium members who really ate good. Click here to ensure you get the juicy exclusive’s for todays price action here… 

Stocks.News does not hold positions in companies mentioned in the article.