Nvidia Stock Rises. CEO Jensen Huang Just Won This AI Chip Battle.

Nvidia is the leading provider of artificial-intelligence chips. (Joel Saget/AFP via Getty Images)

Key Points

• Nvidia shares rose, outperforming the S&P 500, possibly due to relief over export restrictions.
• A proposed measure that would prioritize American customers for AI chips is unlikely to be included in the annual defense policy bill.
• Nvidia is partnering with Palantir Technologies and CenterPoint Energy on ‘Chain Reaction’ to update energy-infrastructure software for AI.

Nvidia was rising early on Thursday, with the chip maker looking to have won a significant political battle over restrictions on semiconductor exports.

Nvidia shares were up 1.5% at $182.20 in early trading. The stock fell 1% on Wednesday.

Nvidia was mildly outperforming the wider market, with the S&P 500 broadly flat.

That could be due to relief that a measure which could have required Nvidia and its peers to give American customers priority on AI chips ahead of foreign buyers is unlikely to make it into the annual defense policy bill, according to multiple media reports.

Nvidia had lobbied against the rule, arguing worldwide sales do not deprive U.S. customers of its hardware. Nvidia CEO Jensen Huang met with President Donald Trump on Wednesday.

The focus of chip-export restrictions continues to be on China. Nvidia currently isn’t forecasting any revenue from Chinese sales due to opposition from Beijing to domestic companies using its chips. However, the chip maker remains hopeful that it will eventually be able to return to China’s fast-growing AI processor market.

Huang appeared on the show of podcast star Joe Rogan on Wednesday in which he praised Trump for his energy policies and said “we are in a technology race,” although he didn’t refer specifically to China.

The European Union’s top technology official said Thursday that the bloc expects to launch the formal bidding process for AI gigafactories early next year. Henna Virkkunen—the EU’s executive vice president for tech sovereignty, security and democracy—said the chips would have to be bought from outside the EU and noted Nvidia is the “global leader” in a press conference. The EU earlier this year announced a new 20 billion-euro ($23.34 billion) fund for up to five AI gigafactories.

Separately, Nvidia was disclosed Thursday to be partnering with Palantir Technologies and utility CenterPoint Energy on a platform called ‘Chain Reaction,’ designed to update energy-infrastructure software for the demands of AI.

Among other chip makers, Advanced Micro Devices was down 0.5% and Broadcom was up 0.6% in morning trading.

Write to Adam Clark at adam.clark@barrons.com