TLDR
- Nvidia (NVDA) stock requires 100% upfront payment for H200 AI chip orders in China
- Chinese companies ordered 2 million+ H200 chips at $27,000 each, exceeding Nvidia’s 700,000 inventory
- China regulators pause H200 approvals to determine domestic chip purchase requirements
- New Nvidia stock payment policy shifts risk to buyers following $5.5B inventory loss
- H200 chip performance is 6X better than banned H20, fueling strong demand
Nvidia (NVDA) stock news centers on strict new payment requirements for H200 AI chip sales in China. The company demands full upfront payment before processing any orders.
The Nvidia stock payment policy removes buyer flexibility entirely. Customers cannot cancel, request refunds, or change configurations after order placement. Some buyers may use commercial insurance or asset collateral instead of cash.
This marks a departure from standard Nvidia stock practices in China. The company previously accepted partial deposits rather than full payment upfront.
Nvidia Stock Faces China Regulatory Uncertainty
Beijing has not approved H200 chip shipments. This regulatory limbo drives Nvidia’s stricter approach.
Chinese authorities asked tech firms to pause H200 orders. Regulators are deciding mandatory domestic chip purchases alongside each H200 unit.
Trump reversed Biden-era export bans last month. H200 sales now require 25% fees to the U.S. government.
Chinese demand for Nvidia stock products stays strong. Companies ordered over 2 million H200 chips worth roughly $54 billion.
Nvidia’s H200 inventory totals 700,000 chips. Orders exceed supply nearly three times over.
The H200 delivers six times better performance than the banned H20. Chinese AI firms need this upgrade badly.
Domestic chips like Huawei’s Ascend 910C lag behind. The performance gap matters most for training advanced AI models.
Nvidia Stock CEO Confirms Strong H200 Demand
CEO Jensen Huang said H200 demand remains “quite high.” The company ramped production to meet orders.
First shipments arrive before Lunar New Year in mid-February. Nvidia fulfills initial orders from existing stock.
Taiwan Semiconductor Manufacturing will expand H200 production. Additional manufacturing starts in Q2 2026.
Nvidia stock protection stems from past losses. The company wrote down $5.5 billion in inventory last year after sudden H20 export bans.
New payment terms transfer financial risk to Chinese buyers. Customers commit capital without guaranteed approval or deployment.
China may approve select H200 imports this quarter. Officials plan commercial purchases while blocking military and government use.
Chinese internet giants like ByteDance view H200 as essential. The chip ranks as Nvidia’s second-most powerful product.
The payment structure protects Nvidia stock from regulatory whiplash. Buyers absorb uncertainty while securing access to superior AI chips.
