Did Trump Profit As Nvidia Won Easier Access To China? Stock Disclosures Raise Questions

A watchdog’s reading of Donald Trump’s financial disclosures has landed the US president in a conflict-of-interest row. DeKleptocracy, an anti-corruption group, reported that Trump purchased NVIDIA stock valued at up to $5 million shortly before his administration loosened curbs on AI chip sales to China, a move from which the chipmaker stood to gain the most.

The filings show heavy buying of between $1 million and $5 million in NVIDIA shares only days ahead of Trump’s sudden decision, in May last year, to drop the AI Diffusion Framework. That export control regime was put in place under his predecessor, Joe Biden. The analysis said shares in Apple, Meta and Microsoft were also among his purchases.

What The Biden-era Rule Did

Biden’s framework placed countries that import AI chips into three buckets, namely allies, others and countries of concern. At its heart sat a tight cap on shipments of advanced semiconductors to that last group, a list that included China and Russia.

Trump’s team scrapped it, with the administration justifying the step by saying the rules burdened firms and held back innovation. The repeal spared NVIDIA a direct blow, since China accounted for roughly a quarter of its sales, and its share price jumped soon after the announcement.

The buying carried on. In December last year, the US Commerce Department said it planned to clear sales of the H200 chip to China, a processor said to be six times as powerful as those already available there. Right after that, Trump was recorded purchasing NVIDIA shares on at least three more occasions, each worth between $250,000 and $500,000.

A Scandal Around The Chipmaker

The findings land while NVIDIA is caught up in what has been called a “spy scandal”, and they add to doubts about ties between business and politics around Trump.

Jensen Huang quit as NVIDIA’s chief executive on the 12th after news emerged of his extramarital affair with Alice Huang, also known as Huang Le, who is suspected of working for China. Huang himself is suspected of moving advanced US chips into China, or of taking trade secrets out, through her.

Huang is regarded as a close Trump ally who openly backed the president’s second-term push to relax AI rules. He also gave a large sum toward building an event venue at the White House.

Suspicions have grown that Trump may have knowingly ignored claims about Alice Huang’s alleged spying, even though US intelligence agencies reportedly briefed him on them twice. The suspicion is that personal ties or financial interests may have played a role.

DeKleptocracy said in its report that Washington should look into how a suspected Chinese spy shaped White House policy for the benefit of one AI company. It also urged the country to weigh whether Trump’s personal corruption swayed the call to give China technology that is central to the entire AI industry.

The Democratic Party, which is positioned to gain control of Congress next year, has opened a formal inquiry into the alleged collusion between Trump and Huang and into the export approvals.