Nvidia's planned resumption of sales of its H20 AI chips to China is part of U.S. negotiations on rare earths, Commerce Secretary Howard Lutnick said, and comes days after its CEO met President Trump.

Nvidia CEO Jensen Huang praised China's AI models a day after the U.S. chipmaker said it expected to resume sales of a key product to China. "More than 1.5 million developers in China build on Nvidia today to bring their innovations to life," he said.

ASML Holding NV Chief Financial Officer Roger Dassen said it will be positive for chip demand if Washington lifts restrictions on the sale of some artificial intelligence processors to China.

Data center operators in China, which use Nvidia’s H20 chips to crunch data for various AI services, have been struggling to find a local alternative that is as good as the U.S. company’s chips.