Nvidia shares rose in premarket trading following a Reuters report that the United States had given the green light to about 10 Chinese companies to buy the H200 chip, the company's second most powerful AI chip, although deliveries have not yet taken place, as CEO Jensen Huang seeks to revive stalled sales during a crucial visit to China this week.
Shares of the artificial intelligence giant rose 1.80% in pre-market trading on Thursday.
According to Reuters, Huang was not initially included in the US delegation heading to Beijing, but he joined the trip after receiving an invitation from President Donald Trump, who took him along on a stop in Alaska on his way to a summit with Chinese President Xi Jinping, raising hopes that the visit would help open the door to selling H200 chips in the Chinese market.
The report noted that the US Department of Commerce approved granting approximately 10 Chinese companies — including Alibaba, Tencent, ByteDance, and JD.com — the right to purchase H200 chips. Several distributors, including Lenovo and Foxconn, also received the same approval, with each buyer allowed to obtain up to 75,000 chips, either directly from Nvidia or through these intermediaries.
Lenovo confirmed that it is one of the authorized companies to sell the H200 in China under the export license granted to Nvidia, according to the report.
Despite US approvals, no agreement has yet been finalized. Chinese companies have backed away from proceeding following directives from Beijing, the report said, noting mounting pressure in the Chinese capital to block or severely restrict these applications. This shift is partly attributed to changes on the US side, though their precise nature remains unclear, according to Reuters.
According to Reuters, Huang was not initially included in the US delegation heading to Beijing, but he joined the trip after receiving an invitation from President Donald Trump, who took him along on a stop in Alaska on his way to a summit with Chinese President Xi Jinping, raising hopes that the visit would help open the door to selling H200 chips in the Chinese market.
The report noted that the US Department of Commerce approved granting approximately 10 Chinese companies — including Alibaba, Tencent, ByteDance, and JD.com — the right to purchase H200 chips. Several distributors, including Lenovo and Foxconn, also received the same approval, with each buyer allowed to obtain up to 75,000 chips, either directly from Nvidia or through these intermediaries.
Lenovo confirmed that it is one of the authorized companies to sell the H200 in China under the export license granted to Nvidia, according to the report.
Despite US approvals, no agreement has yet been finalized. Chinese companies have backed away from proceeding following directives from Beijing, the report said, noting mounting pressure in the Chinese capital to block or severely restrict these applications. This shift is partly attributed to changes on the US side, though their precise nature remains unclear, according to Reuters.
