As the top chip company, Nvidia's chips are in high demand from the largest companies, like Amazon and Microsoft, that are building out huge AI businesses. They themselves are serving other giants with AI tools and services in partnership with Nvidia, offering access to the chipmaker's powerful technology.

For the US, Nvidia’s continued presence in China may serve as a strategic lever to maintain its dominance in AI. Experts told CNBC that keeping Chinese firms reliant on US-designed chips and software, especially Nvidia’s widely used CUDA platform, helps cement America’s global leadership.

Sources say firms are rushing to buy Nvidia's H20 AI chips, as the company said it planned to resume sales to China.