The U.S.'s policy goals may not be coherent, while China's own chip efforts and distributed AI training grow more capable.

Key Takeaways Semiconductor stocks jumped Wednesday, a day after President Trump reportedly said tariffs on China "will come down substantially."Shares of Nvidia, Broadcom, AMD, and Intel all traded higher.

President Donald Trump’s administration has barred Nvidia Corp. from selling its H20 chip in China, an escalation of Washington’s tech battle with Beijing that will cost the company billions of dollars and hamstring a product line it explicitly designed to comply with previous US curbs.