TLDR
- Nvidia shares climb after U.S. approves H200 exports to China, fueling optimism.
- Move marks rare reversal in U.S. chip export policy for Chinese markets, cautiously.
- Export only allowed to approved buyers under tight oversight rules from DC.
- High-end H200 sales revive hopes for Nvidia in data-center business in China.
- China’s reaction uncertain — firms recently shifted to local processors for now.
NVIDIA (NVDA) stock closed at $185.55, up 1.72%, showing a strong upward move that continued into after-hours trading.
NVIDIA Corporation, NVDA
Nvidia’s share price gained momentum as the U.S. approved H200 chip exports to China, and the move signaled a major policy shift. The decision marked a significant reversal in export controls, and it created renewed expectations for expanded global chip access. The approval reinforced Washington’s attempt to balance security goals with economic needs.
The administration moved quickly to outline conditions for shipments, and it extended the same structure to AMD and Intel. Officials confirmed that only approved customers would receive the hardware, and they emphasized strict oversight of all transactions. The government introduced a fixed payment requirement that tied each export to a direct financial return.
Nvidia responded to the update with restrained optimism, and its leadership acknowledged uncertainty about China’s response. The company noted that China previously rejected reduced-performance chips, and that reluctance could shape upcoming procurement decisions. Even so, the clearance opened a path for potential reentry into a market that once generated major revenue.
H200 Gains Regulatory Approval but Faces Market Hurdles
The H200 chip gained attention due to its strong performance and expanded memory, offering faster processing than the H100. The Institute for Progress reported that the H200 far exceeded the capability of the H20, and it noted that such performance could reshape China’s computing landscape. Additionally, analysts said the export would enable high-end systems, although the cost structure might be heavier.
U.S. officials framed the decision as a targeted, strict prohibition on Nvidia’s newer Blackwell hardware. They stated that advanced architectures would remain restricted, and they stressed that the H200 approval stood as the only current concession. Internal discussions confirmed that alternative proposals failed to gain support within the administration.
China’s willingness to buy the H200 remained unclear, and Nvidia cited recent pushback from domestic buyers. Local firms shifted to homegrown processors last year, and that transition removed Nvidia from China’s data center cycle. The new authorization revived speculation about partial access returning over time.
Policy Shift Shapes U.S. Chip Strategy
The White House rejected earlier attempts to send scaled-down Blackwell chips abroad, and senior officials argued that such sales threatened competitive leadership. They reaffirmed the prohibition after internal reviews directed attention toward a narrower H200 pathway. Furthermore, congressional leaders continued to pressure agencies to maintain firm limits.
Lawmakers also removed the proposed GAIN AI Act that eliminated a rule prioritizing domestic customers. The removal eased one roadblock for chip firms, and it aligned with ongoing discussions about trade flexibility. Some members expressed concern that H200 exports might strengthen foreign military capabilities.
Nvidia positioned the decision as an opportunity to re-engage a massive market. The company stated that the H200 supports both training and deployment workloads, and its design meets modern scaling needs.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
