Trump Trade: Trump says Nvidia can ship H200 chips to China

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly.

H200 CHIPS TO CHINA: President Trump said on social media that the U.S. will allow Nvidia (NVDA) to ship its H200 artificial intelligence chips to “approved customers” in China and elsewhere, under a set of conditions. Chinese President Xi Jinping “responded positively” to the proposal, Trump added. Trump stated that 25% of the chips sales will be paid to the U.S. government as part of the deal.

LIMITING ACCESS: Beijing is considering allowing only tightly controlled access to Nvidia’s H200 chips, requiring buyers to apply and justify why local alternatives are not sufficient, The Financial Times’ Zijing Wu reports. A final policy has not yet been determined as China continues pushing for semiconductor self-sufficiency. President Donald Trump on Monday said in a Truth Social post that he had told Chinese President Xi Jinping that the US would allow Nvidia “to ship its H200 products to approved customers in China…under conditions that allow for continued strong National Security. President Xi responded positively!”

SAME APPROACH: President Trump says the “same approach” used to let Nvidia ship H200 chips to China will also apply to AMD (AMD), Intel (INTC) and “other GREAT American Companies,” Reuters’ Stephen Nellis, Karen Freifeld and Michael Martina report. Trump said Monday that the U.S. will let Nvidia’s H200 processors be exported to China and collect a 25% fee on the sales.

INCREMENTAL POSITIVE: Wells Fargo analyst Aaron Rakers views official reports of Trump Administration finalizing details of lifting Nvidia’s H200 export controls to China as an incremental positive. Wells thinks investors could think about a $25-$30B/annum-plus revenue and positive 60c-70c/share EPS impact. The firm has an Overweight rating on the shares with a price target of $265.

BULLISH: Money manager Michael Burry says he holds significant positions in Fannie Mae (FNMA) and Freddie Mac (FMCC) common stock and believes a re-listing is “nearly upon us.” Burry became bullish on the shares after President Donald Trump’s election and says regulators must ease capital requirements and scale back the government’s claim on the companies for a public offering to occur. Burry argued in a blog post on Monday that that without the government scaling back its claim, Fannie and Freddie’s common shares are “worthless” and notes “there remains a final steep, windy and rocky climb to IPO for both.”