Key Takeaways
- Nvidia shares advanced roughly 2.3% following news that Washington authorized approximately 10 Chinese enterprises to acquire H200 processors, with Alibaba, Tencent, ByteDance, and JD.com among the approved list
- Authorized purchasers may acquire as many as 75,000 H200 units each, either through direct Nvidia channels or via sanctioned partners like Lenovo and Foxconn
- Jensen Huang, Nvidia’s CEO, accompanied a White House trade mission to Beijing following a direct request from President Trump — his name was added after initial delegation plans
- Contracts remain unsigned as Chinese corporations have hesitated to proceed with purchases amid direction from Beijing authorities
- Wolfe Research maintains Nvidia as its premier AI semiconductor selection, describing it as “our best idea” following six weeks of relative underperformance
Nvidia (NVDA) shares climbed roughly 2.3% during Wednesday trading after Reuters disclosed that Washington has authorized approximately 10 Chinese technology companies to acquire the H200 processor — Nvidia’s second-tier flagship AI chip available for international distribution.
Shares were changing hands near $225.83, representing a $5.05 advance for the session.
Companies receiving authorization include Alibaba, Tencent, ByteDance, and JD.com. Distribution partners Lenovo and Foxconn secured clearance as well. Individual buyers can acquire up to 75,000 processors, purchasing either directly from Nvidia or through designated intermediary 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, the company’s chief executive, accompanied a U.S. commercial delegation to Beijing. His participation wasn’t part of the original plan but materialized after President Trump personally extended an invitation, reportedly collecting him during an Alaska stopover before continuing to discussions with Chinese President Xi Jinping.
Observers interpret the journey as an attempt to revive Nvidia’s dormant Chinese operations.
Transactions Remain Pending
Notwithstanding the regulatory clearances, no agreements have reached completion. Chinese corporations have stepped back from submitting purchase orders after receiving instructions from Beijing. Reports indicate mounting pressure within China to either prohibit or rigorously scrutinize potential acquisitions.
This uncertainty places Nvidia in limbo — possessing the necessary permissions but witnessing no actual product movement.
Prior to the implementation of stricter U.S. export controls, Nvidia commanded approximately 95% of China’s premium chip marketplace. The Chinese market previously represented 13% of Nvidia’s aggregate revenue. Huang has projected China’s AI sector could reach $50 billion in value this year.
Chinese technology equities also responded favorably to the development. Alibaba advanced 8.18%, JD.com surged 7.24%, and Tencent appreciated 4.80%.
Wolfe Maintains Nvidia as Premier AI Chip Selection
In a separate development, Wolfe Research reaffirmed its optimistic position on Nvidia approaching earnings season, sustaining an Outperform rating and designating it the firm’s leading recommendation in AI semiconductors.
Analyst Chris Caso indicated that anxieties surrounding cloud infrastructure capital expenditures that pressured AI computing stocks earlier this year have substantially diminished, with hyperscaler investment projections continuing their upward trajectory.
Wolfe stated that “hyperscalers simply have no choice but to spend,” highlighting agentic AI as a transformative technology development that major cloud infrastructure providers cannot afford to overlook.
Nvidia has trailed AI computing competitors throughout the preceding six weeks despite recording approximately 28% gains, with Broadcom, Marvell, and AMD delivering more robust performance during this interval.
Wolfe attributed the relative weakness primarily to insufficient 2027 revenue transparency. Rival companies have provided more definitive forward-looking projections, offering investors greater clarity.
The research firm observed that Nvidia’s $1 trillion opportunity outlined at its GTC conference failed to encompass all revenue streams, including prospective business yet to be secured and revenue contributions from the Rubin pod architecture. Wolfe suggested that enhanced 2027 guidance could enable Nvidia to narrow the performance differential against competitors.
“NVDA remains our best idea. The stock’s underperformance hasn’t changed our fundamental view,” Wolfe Research stated.
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
