Treasury Secretary Scott Bessent’s comments and news of the resumption of H20 chip sales to China have excited Wall Street.

Nvidia said it has filed applications to resume selling H20 GPUs in China and has received assurances that licenses will be granted.

For strategists at JPMorgan Chase & Co. and Goldman Sachs Group Inc. as well as money managers in Hong Kong and Singapore, an opaque term has suddenly emerged as the catchphrase for deciphering Chinese policy intentions and navigating the stock market.

While there's still significant risk on the geopolitical front, allowing the sale of capable AI processors to China suggests the potential for a significant improvement in U.S. trade relations. If so, AMD stock could continue to see bullish business-specific catalysts in addition to valuation tailwinds for the broader market.

Nvidia Corporation's $4T valuation is driven by AI growth, global partnerships, and quantum computing. Click to explore why it's not too late to invest in NVDA.

Trump said this week that there would be no new extensions granted for the August 1 deadline. Market pros tell BI where they see winners and losers.

Currently, the stocks amount to about $2 trillion in market value. But the leading investment bank has predicted an average growth rate of 13% annually over the next two years for the Prom 10 – hinting that there is ample headroom for China's tech leaders to move into similarly dominant positions as their U.S. counterparts.

Tech led US stocks higher on Tuesday as a key consumer inflation print showed inflation accelerated in June, big banks kicked off earnings season, and Nvidia was set to receive a green light for trade with China from the Trump administration.