Chinas booming artificial intelligence sector is set to demand $39.5 billion worth of AI chips in 2025, yet supply is forecast to fall short at $37 billion, creating a $2.5 billion gap, according to Bernstein

Nvidia stock's surge looks poised to accelerate because investors' biggest concern about the company -- losing the Chinese data center AI chip market -- is now a non-issue.

Nvidia says it is filing applications to with the U.S. government to resume sales of its H20 GPU to China, in what could represent a huge policy win.