Nvidia’s stock rose 1.5% on Friday after a Bloomberg report suggested Chinese authorities may be close to formally allowing imports of the company’s H200 AI chips. These chips are critical for running advanced artificial intelligence systems and form a key part of Nvidia’s high-performance computing business.
According to the report, Chinese regulators have given in-principle approval for major technology companies, including Alibaba, Tencent, and ByteDance, to start preparing orders for the H200 chips. These companies can now discuss the specific quantities they would like to purchase, signaling progress toward potential formal approval.
This news contradicts recent reports that Beijing was blocking H200 shipments to China. While there is progress, sources familiar with the matter said Chinese officials may require companies to buy a certain number of domestic chips as part of the approval process. No official quotas have been set yet.
Despite the positive headlines, Wall Street analysts are urging caution. Jordan Klein, a technology specialist at Mizuho, advised investors not to rush to increase revenue or earnings estimates based on this news. He noted that most investors prefer Nvidia not obtain approval yet, as it could be revoked at any time. Klein also highlighted that H200 chip sales to China are not included in most forward-looking estimates and should be considered more like a “free call option” rather than guaranteed revenue.
Even so, Nvidia remains one of Klein’s favorite long-term technology investments. The development is important for investors because access to the Chinese market could significantly expand Nvidia’s AI chip sales, but uncertainty remains until Beijing issues formal approval.
