U.S. Approves NVIDIA's (NVDA) H200 Processor Exports to China, CEO Flags China's AI Infrastructure Advantage

NVIDIA Corporation (NASDAQ:NVDA) is one of the 15 best AI stocks to watch in December 2025.

On December 8, 2025, Reuters reported that the U.S. had approved NVIDIA Corporation (NASDAQ:NVDA)’s exports of the H200 processor to China, subject to a 25% fee on such sales. President Donald Trump, announcing the decision on Truth Social, described it as a strategic compromise designed to “protect national security, create American jobs, and keep America’s lead in AI.” However, exports of Nvidia’s flagship Blackwell chips have still not been allowed, with this arrangement avoiding a full ban that strategists feared would accelerate Huawei’s rise in China’s AI chip market.

NVIDIA Corporation (NASDAQ:NVDA) expressed optimism toward the move, calling the H200 export framework “a thoughtful balance that is great for America.” However, the outlook for demand remains uncertain amid Beijing’s ongoing pressure on domestic firms to avoid U.S. technology. Following the announcement, Nvidia’s shares rose 2% after hours, after recording a 3% rally earlier in the day.

This update came following CEO Jensen Huang’s comments on December 6, 2025. Huang warned that China’s structural advantages in construction speed and energy capacity could move past U.S. infrastructure readiness in the AI era. He urged that this imbalance must be addressed urgently by the U.S. despite the company’s multigenerational lead in AI chips.

Meanwhile, analyst sentiment surrounding NVIDIA Corporation (NASDAQ:NVDA) remains strong, with Bernstein reiterating an “Outperform” rating with a $275 price target. The firm sees the company’s internal rebuttal to bearish commentary as “broadly valid.” Accordingly, it dismissed concerns around Nvidia’s financial position.

NVIDIA Corporation (NASDAQ:NVDA) is focused on the development of advanced GPUs, AI systems, and accelerated computing platforms for data centers, gaming, automotive, robotics, and enterprise applications globally.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Small-Cap Biotech Stocks to Buy According to Analysts and 11 Overlooked Tech Stocks to Invest In.

Disclosure: None.