Key Highlights
- Shares of Nvidia advanced approximately 2.3% following news that Washington authorized roughly 10 Chinese tech companies to acquire H200 chips
- Companies receiving approval include Alibaba, Tencent, ByteDance, and JD.com, each allowed to purchase as many as 75,000 chips
- Jensen Huang, Nvidia’s CEO, accompanied a White House delegation to Beijing following a direct invitation from President Trump
- Despite approvals, no transactions have been finalized — Chinese companies have hesitated after receiving guidance from Beijing officials
- Previously, China represented 13% of Nvidia’s total revenue; Huang has projected China’s AI sector could reach $50 billion in value this year
Shares of Nvidia experienced a rally of approximately 2.3% during Wednesday’s trading session after Reuters disclosed that Washington has authorized nearly 10 Chinese technology companies to acquire the H200 chip — the company’s second-tier AI processing unit in terms of performance.
The chipmaker’s stock reached roughly $225.83, representing a daily increase of $5.05, following premarket gains of approximately 1.8% earlier in the trading day.
Companies granted authorization include Alibaba, Tencent, ByteDance, and JD.com. Several distribution partners — including Lenovo and Foxconn — have also secured approval. Each authorized entity may acquire up to 75,000 chips, whether purchasing directly from Nvidia or through sanctioned distribution channels.
Lenovo acknowledged it is “one of several companies approved to sell H200 in China as part of Nvidia’s export license.”
Jensen Huang, the company’s chief executive, traveled to Beijing alongside a U.S. government delegation. Though not initially scheduled, he joined the trip following a personal invitation from President Trump, who reportedly collected him during a refueling stop in Alaska while heading to discussions with Chinese President Xi Jinping.
The diplomatic visit represents an effort to revive Nvidia’s Chinese operations — a territory where the company previously held market supremacy.
Transactions Remain Pending
While approvals have been issued, no contracts have been executed. Chinese technology firms have refrained from submitting purchase orders after receiving instructions from Beijing authorities. Reports indicate that significant pressure is building within the Chinese government to either prevent or rigorously scrutinize any potential acquisitions.
The precise catalyst behind Beijing’s cautious approach remains somewhat ambiguous, though Reuters indicated that modifications to U.S. policy contributed to the changing dynamics.
This uncertainty leaves Nvidia in limbo — holding the necessary permissions but unable to execute shipments.
The Stakes for Nvidia’s China Business
Prior to the implementation of stricter U.S. export controls, Nvidia commanded approximately 95% of China’s advanced semiconductor market. This commanding market share has since declined considerably.
Historically, China contributed 13% of Nvidia’s overall revenue. Huang has publicly stated his assessment that China’s AI market could achieve $50 billion in value during the current year — representing a market opportunity Nvidia is clearly unwilling to abandon.
Chinese technology equities also responded positively to the development. Alibaba climbed 8.18%, JD.com surged 7.24%, and Tencent advanced 4.80%. Lenovo registered a gain of 1.66%.
The H200 represents Nvidia’s second-tier AI processing chip, positioned beneath the flagship H100 within its data center product portfolio. It emerged as a focal point in export discussions after restrictions were imposed on more advanced chip models.
Huang’s participation in the Beijing visit, at Trump’s personal request, represents a significant development in ongoing efforts to establish a viable framework for semiconductor sales to Chinese purchasers.
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