Key Takeaways
- Shares of Nvidia increased approximately 2.3% following news that U.S. authorities approved about 10 Chinese technology companies to acquire H200 chips
- Companies receiving authorization include Alibaba, Tencent, ByteDance, and JD.com, with purchase limits set at 75,000 chips per company
- Jensen Huang, Nvidia’s CEO, traveled to Beijing with a White House delegation after receiving a personal invitation from President Trump
- Despite approvals being granted, no transactions have been finalized as Chinese companies have withdrawn following directives from Beijing authorities
- The Chinese market previously represented 13% of Nvidia’s total revenue; Huang projects China’s artificial intelligence sector could reach $50 billion in value this year
Shares of Nvidia experienced an upward movement of approximately 2.3% during Wednesday’s trading session after Reuters disclosed that the United States government has authorized around 10 Chinese technology firms to acquire the H200 chip — the company’s second-tier AI processor in terms of capability.
The stock reached approximately $225.83, representing a daily increase of $5.05, following premarket gains of roughly 1.8% during early trading hours.
Companies granted permission include Alibaba, Tencent, ByteDance, and JD.com. Several distribution partners — including Lenovo and Foxconn — have also secured authorization. Individual purchasers may acquire as many as 75,000 chips, procuring them either directly from Nvidia or through authorized distribution channels.
Lenovo issued a statement confirming it is “one of several companies approved to sell H200 in China as part of Nvidia’s export license.”
Jensen Huang, the company’s CEO, traveled to Beijing alongside a U.S. delegation. Though not originally scheduled to participate, he joined the trip following a personal invitation from President Trump, who allegedly brought him aboard during an Alaska stopover while en route to discussions with Chinese President Xi Jinping.
Analysts view the journey as an effort to revive Nvidia’s dormant Chinese operations — a territory the semiconductor manufacturer previously controlled.
Transactions Remain Pending
Despite receiving official clearance, no agreements have been finalized. Chinese corporations have stepped back from issuing purchase orders after receiving instructions from Beijing. Reports indicate increasing pressure within the Chinese government to either prevent or thoroughly scrutinize any chip acquisitions.
The catalyst behind Beijing’s position change remains somewhat unclear, although Reuters indicated that modifications to U.S. policy contributed to the situation.
This uncertainty leaves Nvidia in limbo — holding valid authorizations but without active chip shipments.
The Stakes for Nvidia’s Business
Prior to the implementation of stricter U.S. export controls, Nvidia controlled approximately 95% of China’s premium semiconductor market. This commanding market position has declined significantly since restrictions took effect.
The Chinese market previously generated 13% of Nvidia’s overall revenue. Huang has publicly stated his belief that China’s AI market could achieve a valuation of $50 billion during the current year — underscoring why Nvidia views this territory as strategically essential.
Chinese technology equities also responded positively to the announcement. Alibaba’s shares climbed 8.18%, JD.com surged 7.24%, and Tencent advanced 4.80%. Lenovo’s stock increased 1.66%.
The H200 represents Nvidia’s second-tier AI processor, positioned beneath the premium H100 within its data center product portfolio. This chip became central to export discussions after limitations were imposed on more advanced models.
Huang’s appearance in Beijing, arranged through Trump’s invitation, represents a significant development in ongoing attempts to establish a viable framework for semiconductor transactions with Chinese purchasers.
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