Nvidia NVDA.O said on Monday it will resume sales of its H20 artificial intelligence chip to China and has introduced a new model tailored to meet regulatory requirements in the Chinese market.

Nvidia stock spiked on Tuesday. The AI chip titan said it had received assurances from the administration that it can resume sales of key AI chips to China.

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