Nvidia shares rose more than 2% in Thursday\u2019s premarket after the US President Donald Trump summit with China. If gains hold, it would be the seventh straight up day for NVDA.<\/p>\n
The US Commerce Department approved ten Chinese firms to import Nvidia\u2019s H200 AI chip, plus some Asian distributors. US Retail Sales for April fell from 1.6% MoM to 0.5% MoM, matching forecasts.<\/p>\n
DJIA futures rose 0.9% premarket, S&P 500 futures gained 0.3%, and NASDAQ futures fell 0.2%. Nvidia is seeking to rebuild China market share after multiple rounds of US trade curbs.<\/p>\n
Before the Washington restrictions, Nvidia held a 95% share of China\u2019s AI chip market. The H200 is based on the H100 platform with higher memory and bandwidth, while Blackwell chips remain restricted for China.<\/p>\n
The new clearance allows Alibaba, Tencent, ByteDance and JD.com, plus Foxconn and Lenovo, to buy H200 chips. Purchases are capped at 75,000 chips per company.<\/p>\n
NVDA previously peaked at $216.83 on 27 April, then pulled back to about $195 before breaking above that high on Monday. The next test area is near $240, with support at $216.83, $211, and $185 to $191, while the weekly RSI is 68.<\/p>\n
Given the approval for Nvidia to resume significant sales to key Chinese firms, we see this as a strong bullish signal for the coming weeks. The stock’s momentum, now on its seventh consecutive day of gains, is backed by a fundamental improvement in its revenue outlook from the massive Chinese market. Derivative traders should position for a continued move higher, targeting the trendline resistance near the $240 level.<\/p>\n
A direct strategy would be to buy call options with June or July 2026 expiration dates to capitalize on this expected upward move. We believe strike prices of $225 or $230 offer a compelling way to participate in the rally toward the $240 target. This approach leverages the positive news while defining the maximum risk to the premium paid for the options.<\/p>\n
For a more conservative play, selling cash-secured puts or constructing a bull put spread below the key support level of $216.83 could generate income. This strategy profits from the stock staying above this technical floor, benefiting from both time decay and the stock’s upward drift. We saw a similar, though smaller, stock rally in late 2025 when the first H200 case-by-case approvals were announced, suggesting a historical precedent for this type of news.<\/p>\n
This access to China’s market is critical, as recent industry reports show Nvidia’s market share there fell from over 90% to around 55% in the last few years amidst competition from domestic firms. While the broader market shows some indecision, with today’s April retail sales figures slowing to 0.5% growth, the company-specific news for Nvidia should outweigh macro concerns. According to Q1 2026 data from the Semiconductor Industry Association, China’s demand for AI processing power continues to grow over 30% annually, underscoring the importance of these sales.<\/p>\n
However, we must note that the weekly Relative Strength Index is at 68, nearing overbought territory, suggesting the rally is becoming mature. Implied volatility on near-term options has also risen, making new long positions more expensive. This indicates that while the path seems upward, the stock may be prone to a brief pullback after such a strong run-up.<\/p>\n","protected":false},"excerpt":{"rendered":"
Nvidia rises premarket as US approves H200 chip imports to China; seventh straight gain possible; markets mixed.<\/p>\n","protected":false},"author":87,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-46756","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t