Trump briefly considered splitting up Nvidia in order to spur competition. He then backed down

Recap Nvidia’s CEO Jensen Huang’s recent Washington visit seems to have paid off more than imagined. The company convinced the Trump administration of the need to relax recent export controls. And the president re-evaluated the idea of breaking up Nvidia once he learned more about the chip manufacturing business.

Donald Trump He briefly considered splitting Nvidia up, the world’s most valuable and largest chipmaker. Trump thought that splitting up Nvidia would increase competition in the artificial-intelligence and chipmaking industries. However, he later learned that it would take new players years to catch up.

Trump made the remarks at a recent You summit while praising Jensen Huang who was in Washington. Aides told Trump who had never heard of Nvidia, Huang, or Nvidia until recently that a breakup was going to be difficult.

Nvidia’s biggest victory from the visit came from gaining permission to Resume the sales of H20 GPUs for data centers in China. The company had to cancel orders and stop sales after the Trump administration’s export controls in April, causing it to lose half its Chinese market and billions of dollars.

US officials are concerned about the potential military applications of Nvidia’s advanced chip, but Huang says China’s military won’t require American technology. Commerce Secretary Howard Lutnick CNBC reported that the Trump administration reversed the export ban because the H20 was no longer Nvidia’s fastest product.

US officials hope to maintain China’s reliance on US chip and delay the development homegrown solutions such as DeepSeek. Huang said that the US could remain a leader on the AI market as long as other countries built upon American technology and favored open-source research.

However restarting H20 in China will take some time. Nvidia will fill orders until the remaining stock is depleted. However, manufacturing more could take up to nine months. The Information TSMC’s production facilities for semiconductors are fully occupied and Nvidia has shifted production capacity from one product to another following the ban.

Over the past three-year period, the AI boom has increased chipmaker’s worth by an order of magnitude. It is now the first $4 trillion public company in the world. Nvidia stock has risen by around 20% since this year’s start. Some warn that the market is dangerously overhyped. A top economist recently demonstrated that AI has created a bubble larger than the turn-of-the-millennium dot-com bubble. Another analyst claims that the recent growth of the S&P 500 is almost entirely due to Nvidia GPU sales.