Nvidia Confirms China H200 Chip Sales Approval
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- Nvidia confirmed it has received approval from Chinese authorities to sell its H200 AI chips and has restarted production for the Chinese market, following earlier U.S. export restrictions.
- Chinese regulators granted final authorization for tech giants DeepSeek, ByteDance, Tencent, and Alibaba to import Nvidia’s H200 chips, after preliminary approval earlier in the year.
- Nvidia is preparing a version of its Groq AI chips for the Chinese market that can handle AI queries and coding tasks, with a planned release by May 2026.
- Jensen Huang, Nvidia’s CEO, stated he sees at least $1 trillion in revenue potential through 2027, expressing certainty that demand for AI infrastructure will remain strong.
- Colette Kress, Nvidia’s CFO, announced the company will return 50% of its free cash flow to shareholders via buybacks and dividends going forward, supporting investor confidence.
- Bank of America’s Vivek Arya named Nvidia his top AI pick with a $300 price target, citing leadership in AI, full-stack integration, and supply assurance despite recent stock stagnation.
Why it matters: Nvidia gains direct access to China’s massive AI market after regulatory delays, unlocking near-term revenue from H200 and Groq chip sales. With $178 billion in projected 2026 free cash flow, its 50% return pledge makes the stock more attractive even as shares trade flat, challenging the market’s skepticism about AI’s return on capital.
