Key Highlights
- Nvidia shares climbed approximately 2.3% following news that the U.S. government authorized around 10 Chinese tech companies to acquire H200 chips, with Alibaba, Tencent, ByteDance, and JD.com among the approved firms
- Authorized purchasers may acquire as many as 75,000 H200 chips each, sourcing them directly from Nvidia or via approved distribution channels like Lenovo and Foxconn
- Jensen Huang, Nvidia’s CEO, accompanied a White House trade mission to Beijing following a personal request from President Trump — his participation was initially unplanned
- Despite receiving authorization, no transactions have been finalized; Chinese companies have hesitated to place orders amid directives from Beijing authorities
- Wolfe Research maintained Nvidia as its leading AI chip recommendation, describing it as “our best idea” even after six weeks of relative weakness compared to sector rivals
Nvidia (NVDA) shares advanced roughly 2.3% during Wednesday’s trading session after Reuters disclosed that U.S. officials granted authorization for approximately 10 Chinese enterprises to acquire the H200 chip — Nvidia’s second-tier AI accelerator currently eligible for international distribution.
Shares traded near $225.83, marking a $5.05 increase for the session.
The list of authorized purchasers encompasses Alibaba, Tencent, ByteDance, and JD.com. Distribution partners Lenovo and Foxconn have similarly secured authorization. Each approved entity may acquire up to 75,000 processors, sourcing them either straight from Nvidia or via sanctioned distribution channels.
Lenovo acknowledged its status as “one of several companies approved to sell H200 in China as part of Nvidia’s export license.”
Jensen Huang, Nvidia’s CEO, made the journey to Beijing alongside a U.S. commercial delegation. His name wasn’t included on the original roster, but he joined following a direct request from President Trump, who reportedly collected him in Alaska during the journey to meetings with Chinese President Xi Jinping.
Industry observers interpret the trip as a strategic move to revive Nvidia’s dormant Chinese operations.
Transactions Remain Pending
Despite regulatory clearance, no agreements have materialized. Chinese enterprises have held back from submitting purchase orders following instructions from Beijing authorities. Sources indicate mounting pressure within China to either obstruct or intensively scrutinize potential acquisitions.
The continuing uncertainty places Nvidia in limbo — regulatory approval secured, yet no actual shipments proceeding.
Prior to the implementation of stricter U.S. export controls, Nvidia commanded approximately 95% of China’s premium chip sector. China previously represented 13% of Nvidia’s aggregate revenue. Huang has projected China’s AI marketplace could reach $50 billion in value this year.
Chinese technology equities also responded positively to the development. Alibaba climbed 8.18%, JD.com surged 7.24%, and Tencent advanced 4.80%.
Wolfe Research Reaffirms Nvidia as Premier AI Chip Selection
In a separate development, Wolfe Research reaffirmed its optimistic outlook on Nvidia prior to the earnings reporting period, maintaining an Outperform designation and identifying it as the firm’s premier recommendation within AI semiconductors.
Chris Caso, the firm’s analyst, stated that apprehensions regarding cloud infrastructure capital expenditures that pressured AI compute equities earlier this year have substantially diminished, with hyperscaler investment projections continuing their upward trajectory.
Wolfe emphasized that “hyperscalers simply have no choice but to spend,” highlighting agentic AI as a transformative technology that major cloud infrastructure providers cannot afford to overlook.
Nvidia has trailed AI compute competitors throughout the previous six weeks despite recording approximately 28% gains, while Broadcom, Marvell, and AMD delivered superior performance during the same period.
Wolfe attributed the relative weakness primarily to insufficient visibility regarding 2027 revenue projections. Competing firms have provided more definitive forward-looking guidance, offering investors greater analytical clarity.
The research firm observed that Nvidia’s $1 trillion projection announced at its GTC conference failed to encompass all revenue opportunities, excluding unbilled future contracts and revenue streams from the Rubin pod architecture. Wolfe suggested that enhanced 2027 guidance could enable Nvidia to narrow the performance differential versus competitors.
“NVDA remains our best idea. The stock’s underperformance hasn’t changed our fundamental view,” Wolfe Research stated.
