The agreement between the chipmakers and the U.S. government will allow Nvidia and AMD to obtain export licenses to resume sales to China.

The US has sought to maintain its sovereignty in AI, citing national security concerns and financial motivations.

Nvidia stcok inched up Monday after the Trump administration confirmed that a portion of its AI chip sales to China will go to the U.S. government. in midday trading, shares were up 0.5%. The stock rose 1.