China Chip Ban Eases -- Nvidia, AMD, ASML Poised for Billions

The US just flipped the script on AI chip exports to Chinaand Wall Street is watching closely. Nvidia NVDA announced it has received fresh clearance from Washington to resume shipments of select processors to Chinese customers, with AMD AMD quickly confirming similar approvals. The move reverses earlier restrictions that had shut down a key revenue stream and could unlock billions in sales this year alone. While details remain limited, the development suggests the Biden administration may be taking a more surgical approach to tech tradepreserving national security aims without slamming the door on business entirely.

ASML ASML, the Dutch supplier behind the world's most advanced chipmaking tools, may also stand to benefit from any demand rebound in China. If Nvidia and AMD start moving more units, their suppliers could follow. Still, ASML is keeping expectations in check. CFO Roger Dassen said the easing of restrictions could be a net positive for global demand, but the company isn't revising its playbook just yet. In fact, ASML recently pulled back its 2026 growth outlook, citing rising geopolitical risks and a murky macro environment that continues to cloud long-term visibility.

Even so, Dassen acknowledged the shift could have meaningful implications. If that ban were to be lifted, that could be seen as a positive for global chip demand for sure, he told reporters. Whether this turns into a sustained policy resetor just a temporary reprieveremains to be seen. But for now, investors betting on the global chip recovery just got one more reason to stay in the game.