NVIDIA wins limited H200 approvals

Nvidia has won U.S. approval for a limited set of H200 sales into China, according to Reuters and CNBC, reopening part of a market that had been largely closed by export controls. Reuters reported on May 14 that the U.S. Commerce Department approved about 10 Chinese companies, including Alibaba, Tencent, ByteDance and JD.com, to purchase the H200, Nvidia’s second-most-powerful AI chip. CNBC reported the same day that several distributors, including Lenovo and Foxconn, were also cleared to buy. Both outlets said no H200 deliveries had taken place as of their reporting. The approvals matter because China was once a meaningful Nvidia market before tighter U.S. restrictions on advanced AI chips. Nvidia’s fiscal 2025 annual report showed China accounted for about 13% of revenue. Jensen Huang has previously said China’s AI market could reach $50 billion. ### Which Chinese companies were approved? (finance.yahoo.com) Reuters reported that Alibaba, Tencent, ByteDance and JD.com were among the approved buyers. The same report said a handful of distributors, including Lenovo and Foxconn, also received approval. CNBC separately reported the U.S. had cleared around 10 Chinese firms in total. The Commerce Department approvals described by Reuters were company-specific rather than a broad reopening of the market. (s201.q4cdn.com) Reuters said the sources spoke on condition of anonymity because of the sensitivity of the matter. ### If Washington approved the sales, why have no chips shipped? CNBC reported that no deliveries had been made despite the U.S. approvals. (finance.yahoo.com) Reuters said the sales remained in limbo while Huang sought a breakthrough in China during his trip there this week. The gap between approval and shipment follows a year of shifting U.S. rules on Nvidia’s China business. (finance.yahoo.com) Nvidia disclosed in an April 9, 2025 filing that Washington had informed the company a license was required for exports of H20 products to China. Nvidia later said it took a $4.5 billion charge in the first quarter of fiscal 2026 tied to H20 excess inventory and purchase obligations after demand fell under the new rules. (cnbc.com) ### Why is the H200 important instead of the H20? The H200 is a higher-end AI processor than the H20, which Nvidia had designed for the Chinese market under earlier export rules. Reuters described the H200 as Nvidia’s second-most-powerful AI chip. Nvidia’s April 2025 filing, by contrast, showed the H20 had itself fallen under license requirements. (sec.gov) That sequence helps explain why investors are watching the H200 approvals closely. Nvidia had already booked H20-related costs after the rule change, and any H200 shipment would represent access to a more advanced product line than the chip tailored for China. ### What are Chinese companies doing while shipments are stalled? Chinese technology groups have been increasing their use of domestic AI chips while Nvidia remained constrained, CNBC reported on May 14. (finance.yahoo.com) CNBC said Tencent Chief Strategy Officer James Mitchell told analysts the supply of China-designed GPUs would “progressively” ramp up this year, while Alibaba discussed broader use of self-developed semiconductors. (sec.gov) CNBC said Nvidia’s absence had fueled a homegrown chip boom in China. That reporting did not make the stalled H200 approvals irrelevant, but it showed Chinese buyers were building alternatives while waiting for access to Nvidia hardware. ### What should investors watch next? May 28 is Nvidia’s next scheduled earnings date for fiscal first-quarter results, according to the company’s reporting calendar and earnings materials. (cnbc.com) That release will give Huang and Nvidia a public venue to address China licensing, H200 demand and whether any approved orders have converted into shipments. Any update from the U.S. (cnbc.com) Commerce Department or from approved buyers such as Alibaba, Tencent, ByteDance, JD.com, Lenovo and Foxconn would also clarify whether the approvals remain narrow exceptions or the start of broader case-by-case licensing. Reuters and CNBC have so far reported only limited approvals and no deliveries. (finance.yahoo.com) (investor.nvidia.com)