Key Highlights
- Nvidia shares advanced approximately 2.3% following news that Washington authorized roughly 10 Chinese enterprises to acquire H200 chips
- Companies receiving approval consist of Alibaba, Tencent, ByteDance, and JD.com, each allowed to obtain as many as 75,000 units
- Jensen Huang, Nvidia’s CEO, traveled to Beijing with a White House group following a direct request from President Trump
- Zero transactions have finalized to date — Chinese enterprises retreated after receiving direction from Beijing authorities
- The Chinese market previously represented 13% of Nvidia’s total revenues; Huang projects China’s AI sector could reach $50 billion in value this year
Nvidia shares experienced an upward movement of approximately 2.3% during Wednesday’s trading session after Reuters disclosed that Washington has authorized close to 10 Chinese enterprises to acquire the H200 chip — Nvidia’s second-tier AI processing unit in terms of capability.
Shares reached approximately $225.83, marking a $5.05 increase for the session, following earlier premarket momentum of roughly 1.8%.
Companies receiving authorization encompass Alibaba, Tencent, ByteDance, and JD.com. Several distribution partners — including Lenovo and Foxconn — have similarly secured approval. Individual purchasers may acquire up to 75,000 units, either through direct channels from Nvidia or via authorized middlemen.
Lenovo verified its status as “one of several companies approved to sell H200 in China as part of Nvidia’s export license.”
Jensen Huang, serving as CEO, traveled to Beijing accompanying a U.S. diplomatic group. His name wasn’t initially included but was added following a personal request from President Trump, who reportedly collected him during an Alaska stopover while heading to discussions with Chinese President Xi Jinping.
The diplomatic mission represents an effort to revive Nvidia’s dormant Chinese operations — a territory the chipmaker previously commanded.
Transactions Remain Unsigned
Notwithstanding the authorizations, no agreements have materialized. Chinese corporations have stepped back from submitting purchase orders after receiving instructions from Beijing. Sources indicate intensifying pressure within China’s capital to either prevent or thoroughly scrutinize potential acquisitions.
The precise catalyst for Beijing’s position remains somewhat ambiguous, though Reuters indicated that modifications to U.S. policy contributed to the situation.
This uncertainty places Nvidia in limbo — possessing authorizations but witnessing no actual chip shipments.
Nvidia’s Stakes in Chinese Market
Prior to Washington tightening export controls, Nvidia controlled approximately 95% of China’s advanced semiconductor market. This commanding presence has subsequently diminished considerably.
The Chinese market formerly comprised 13% of Nvidia’s overall revenues. Huang has stated his assessment that China’s AI market could reach $50 billion in valuation this year — representing a territory Nvidia unmistakably seeks to maintain.
Chinese technology equities similarly responded positively. Alibaba climbed 8.18%, JD.com surged 7.24%, and Tencent advanced 4.80%. Lenovo increased 1.66%.
The H200 represents Nvidia’s second-tier AI processing chip, positioned beneath the premier H100 within its data center portfolio. It emerged as a focal point in export discussions after limitations were imposed on higher-performance variants.
Huang’s attendance in Beijing, responding to Trump’s request, signifies a remarkable development in continuing efforts to establish a viable framework for semiconductor sales to Chinese purchasers.
