Shares of Nvidia closed at a record $170.70 Tuesday following news the chipmaker expects to resume exports of its advanced H20 GPU to China.

The Trump White House says it's content to allow Nvidia to tap into the lucrative Chinese market. "We don't sell them our best stuff, not our second best stuff, not even our third best," Commerce Secretary Howard Lutnick said on CNBC Tuesday afternoon.

American chipmaking giant Nvidia says it plans to resume sales to China of an artificial intelligence chip that’s become part of a global race pitting the world’s biggest economies against each other.

Commerce secretary Howard Lutnick said the US’s reversal of restrictions on sales of chips to China followed recent trade negotiations with Beijing over rare earths. President Donald Trump curbed exports of Nvidia’s H2O artificial intelligence chips to China in April as part of an escalation of his trade war with Beijing.

Tech stocks were an outlier, though, and the Nasdaq composite rose 0.2% to set another record thanks to Nvidia, the market’s most influential stock.

Nvidia: H20 export reinstated, bolstering the $200 by this year-end bull case and reviving the China growth story.

Washington has been concerned China could use Nvidia’s chips to get a jump on the U.S. in high-tech fields, particularly when it comes to artificial intelligence.

Nvidia said in a statement that it is filing applications with the US government to resume H20 sales and that "the US government has assured Nvidia that licenses will be granted, and Nvidia hopes to start deliveries soon.

The Silicon Valley chip giant said the Trump administration, which had shut down its sales to China three months ago, had assured it that licenses for the sales would now be granted.

The Nasdaq Composite advanced to its latest record high on Tuesday, powered by a jump in heavyweight Nvidia's shares, while the other Wall Street benchmarks were sluggish as traders digested a key inflation report and a flurry of bank earnings.

This is the second time that Nvidia’s permission to sell in China has changed. As widely reported in April, the firm got re-approved to sell chips to China after a dinner meeting between Huang and Trump in the spring, apparently including a tit-for-tat deal in which Nvidia would create new server setups stateside.

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