Key Takeaways
- Shares of Nvidia advanced approximately 2.3% following news that Washington approved about 10 Chinese enterprises for H200 chip purchases
- Companies receiving authorization include Alibaba, Tencent, ByteDance, and JD.com, each allowed to acquire up to 75,000 units
- Jensen Huang, Nvidia’s CEO, traveled to Beijing with a White House delegation following a direct invitation from President Trump
- Transactions remain pending — Chinese companies have hesitated to proceed based on direction from Beijing
- China previously represented 13% of Nvidia’s total revenue; Huang projects China’s artificial intelligence sector could reach $50 billion in value this year
Shares of Nvidia experienced a boost of approximately 2.3% during Wednesday’s trading session following a Reuters report indicating that Washington has authorized about 10 Chinese enterprises to acquire the H200 chip — the company’s second-tier AI processor.
The chipmaker’s shares reached approximately $225.83, marking a $5.05 increase for the session, building on premarket momentum of roughly 1.8%.
Companies receiving authorization encompass Alibaba, Tencent, ByteDance, and JD.com. Several distributors — including Lenovo and Foxconn — have similarly obtained approval. Each authorized entity may acquire as many as 75,000 processors, whether sourced directly from Nvidia or through sanctioned intermediaries.
Lenovo stated it is “one of several companies approved to sell H200 in China as part of Nvidia’s export license.”
Jensen Huang, the company’s chief executive, traveled to Beijing alongside a U.S. delegation. Initially absent from the official roster, he joined following a personal invitation from President Trump, who reportedly collected him during a stopover in Alaska while traveling to meet with Chinese President Xi Jinping.
The diplomatic visit represents an effort to revive Nvidia’s dormant Chinese operations — a territory where the chipmaker previously held significant market share.
Transactions Remain Pending
Notwithstanding the regulatory approvals, no contracts have materialized. Chinese enterprises have refrained from submitting purchase orders after receiving direction from Beijing. Sources indicate intensifying scrutiny within the Chinese government to either prevent or thoroughly review potential acquisitions.
The catalyst behind Beijing’s revised stance remains somewhat ambiguous, though Reuters indicated that modifications in U.S. policy contributed to the recalibration.
This dynamic positions Nvidia in a state of uncertainty — holding authorizations without actual chip shipments.
The Stakes for Nvidia
Prior to the implementation of stricter U.S. export controls, Nvidia commanded approximately 95% of China’s advanced semiconductor market. This commanding market position has subsequently diminished considerably.
China formerly contributed 13% to Nvidia’s overall revenue stream. Huang has publicly stated his assessment that China’s AI market could independently reach $50 billion in valuation this year — representing a substantial opportunity Nvidia aims to preserve.
Chinese technology equities similarly responded positively to the development. Alibaba climbed 8.18%, JD.com surged 7.24%, and Tencent advanced 4.80%. Lenovo posted gains of 1.66%.
The H200 represents Nvidia’s second-tier AI processor, positioned beneath the premium H100 within its data center portfolio. It emerged as a central element of export discussions after limitations were imposed on more advanced variants.
Huang’s appearance in Beijing, facilitated by Trump’s invitation, represents a significant development in ongoing efforts to establish a viable framework for chip transactions with Chinese purchasers.
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