Key Takeaways
- Nvidia shares advanced approximately 2.3% following confirmation that the U.S. government authorized around 10 Chinese enterprises to acquire H200 chips, with Alibaba, Tencent, ByteDance, and JD.com among the approved list
- Authorized purchasers may acquire as many as 75,000 H200 chips per company, either directly from Nvidia or via sanctioned distributors like Lenovo and Foxconn
- Jensen Huang, Nvidia’s CEO, accompanied a White House trade mission to Beijing following a direct request from President Trump — his name was added to the delegation after initial planning
- Despite approvals being granted, no transactions have been finalized; Chinese companies have hesitated to place orders amid pressure from Beijing officials
- Wolfe Research maintained Nvidia as its premier AI semiconductor selection, describing it as “our best idea” even after trailing competitors for six weeks
Nvidia (NVDA) shares climbed roughly 2.3% during Wednesday’s trading session following a Reuters report indicating U.S. authorities have authorized approximately 10 Chinese corporations to acquire the H200 chip — Nvidia’s second-tier flagship AI accelerator currently permitted for international distribution.
The equity was exchanging hands near $225.83, representing a $5.05 increase for the session.
Companies receiving authorization include Alibaba, Tencent, ByteDance, and JD.com. Distribution partners Lenovo and Foxconn secured approval as well. Individual purchasers may acquire up to 75,000 processors, whether sourcing directly from Nvidia or working through sanctioned middlemen.
Lenovo verified its status as “one of several companies approved to sell H200 in China as part of Nvidia’s export license.”
Chief Executive Jensen Huang made the journey to Beijing alongside a U.S. commercial delegation. His participation wasn’t part of the original plan but materialized after President Trump extended a personal invitation, reportedly collecting Huang in Alaska during the trip to meet with Chinese President Xi Jinping.
Observers interpret the diplomatic visit as an attempt to revive Nvidia’s dormant Chinese operations.
Transactions Remain Pending
Despite receiving authorization, no agreements have materialized. Chinese corporations have withdrawn from submitting purchase requests after receiving direction from Beijing authorities. Reports suggest mounting pressure within China to either prohibit or intensively scrutinize any acquisition attempts.
The dynamic situation leaves Nvidia in limbo — holding valid approvals without actual shipments occurring.
Prior to the implementation of stricter U.S. export controls, Nvidia commanded approximately 95% of China’s premium semiconductor market. The Chinese market previously represented 13% of Nvidia’s overall revenue stream. Huang has projected China’s AI sector could reach $50 billion in value during the current year.
Chinese technology equities responded positively to the development. Alibaba climbed 8.18%, JD.com surged 7.24%, and Tencent advanced 4.80%.
Wolfe Maintains Nvidia as Premier AI Semiconductor Choice
In a separate development, Wolfe Research reinforced its optimistic position on Nvidia in advance of the upcoming earnings period, sustaining an Outperform designation and identifying it as the firm’s leading recommendation in AI semiconductors.
Analyst Chris Caso noted that apprehensions surrounding cloud infrastructure capital expenditure that pressured AI computing equities earlier this year have substantially diminished, with hyperscaler investment projections continuing their upward trajectory.
Wolfe stated that “hyperscalers simply have no choice but to spend,” highlighting agentic AI as a technological evolution the dominant cloud platforms cannot risk overlooking.
Nvidia has trailed AI computing competitors during the previous six-week period despite registering approximately 28% gains, while Broadcom, Marvell, and AMD delivered superior performance throughout that interval.
Wolfe attributed the relative weakness primarily to limited 2027 revenue transparency. Rival companies have provided more definitive forward-looking projections, offering investors enhanced clarity.
The research firm observed that Nvidia’s $1 trillion disclosure during its GTC conference failed to encompass all potential opportunities, including unbilled future contracts and revenue contributions from the Rubin pod framework. Wolfe suggested more explicit 2027 guidance could enable Nvidia to narrow the performance differential against competitors.
“NVDA remains our best idea. The stock’s underperformance hasn’t changed our fundamental view,” Wolfe Research stated.
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