• Nvidia (NVDA) shares rose 2.4% to a record high after the US approved export licenses for its H200 AI chips to about 10 Chinese customers, including Alibaba (BABA), Tencent (BIDU), ByteDance (BYDDY), and JD.com (JD).
  • The licenses permit each buyer to purchase up to 75,000 units under specified terms, signaling a potential restart of China sales for this generation of GPUs.
  • The move reflects a calibrated US approach to tech export controls, balancing geopolitical tensions with revenue opportunities for Nvidia.

US greenlights H200 exports to Chinese tech giants

Nvidia’s shares hit a fresh all-time high, climbing 2.4% in afternoon trading, following reports that the US government has cleared export licenses for the company’s H200 artificial-intelligence chips to a select group of Chinese firms. The approvals cover about 10 customers, including major players like Alibaba, Tencent, ByteDance, and JD.com, according to people familiar with the matter. Each license allows purchases of up to 75,000 chips under specific conditions. Intermediaries such as Lenovo (LLND) and Foxconn have also been cleared as distribution channels.

The decision marks a potential thaw in US-China tech tensions, which had previously restricted Nvidia’s ability to sell its most advanced AI accelerators to Chinese buyers. The H200, a high-bandwidth GPU designed for AI workloads, had been effectively barred from China under earlier export controls. The new licenses, however, come with stringent compliance requirements and are subject to periodic review.

“This is a pragmatic step that allows US companies to capture demand in China while maintaining national-security safeguards,” said an analyst familiar with the matter, speaking on condition of anonymity. “The volumes are capped, but even partial access to the Chinese market could meaningfully boost Nvidia’s revenue.”

Market reaction and broader context

Nvidia’s stock surge reflects investor optimism that renewed China sales will add to the company’s already robust AI-driven growth. The chipmaker has been a standout in the semiconductor sector, with data-center revenue soaring as enterprises and cloud providers ramp up AI infrastructure investments. The H200, which succeeded the H100, has been in high demand globally, and China represents a significant untapped market.

However, the licenses are not without uncertainties. Even with US clearance, Chinese buyers may still need approval from Beijing’s regulators, and geopolitical dynamics could shift. The US government has maintained a tight leash on advanced chip exports, and any escalation in tensions could reintroduce restrictions.

“The approval is a positive signal, but the situation remains fluid,” a source close to Nvidia said. “The company is navigating a complex regulatory environment, and investors should watch for any policy changes.”

Industry implications

The clearance could reshape the competitive landscape for AI hardware in China. Local rivals like Huawei and Cambricon have been vying for market share, but Nvidia’s H200 offers superior performance for training large language models. Chinese tech giants have been eager to secure access to high-end GPUs to support their AI ambitions.

Nvidia declined to comment on the specific licenses. A representative for the US Commerce Department did not respond to a request for comment. The company’s shares are up more than 150% year-to-date, and the stock now trades at a forward price-to-earnings ratio of over 40.

Correction: An earlier version of this article misstated the number of licensed customers. The correct figure is about 10 firms.