Export Controls

• Nvidia released stellar quarterly earnings on May 9, 2026, but results were clouded by ongoing US export controls restricting advanced chip sales to China. • The company agreed to a 15% revenue-sharing deal with the US government on China sales to overturn the controls, allowing resumed exports of certain AI chips. • This arrangement highlights escalating US-China tech tensions, impacting Nvidia's growth in its largest overseas market amid broader semiconductor restrictions.

• US National Security Advisor Jake Sullivan met with Chinese Foreign Minister Wang Yi in Beijing on April 4, 2026, announcing plans for bilateral talks on trade imbalances and semiconductor export restrictions amid rising tensions. • The agreement includes a framework for reducing tariffs on $50 billion in goods and joint cybersecurity standards, with Sullivan stating, 'This is a step toward stabilizing our economic relationship without compromising security.' • The deal matters as it averts potential escalation in US-China tech rivalry, potentially boosting global markets and easing supply chain disruptions affecting US consumers.

The US announced partial rollback of AI semiconductor export restrictions on March 13, 2026, targeting key technologies amid global competition. This move is poised to boost domestic chipmakers ahead of Nvidia's GTC event next week. Nvidia, HBM, and related AI plays face heightened focus with potential upside. Policy shift aims to balance national security and industry growth.