Nvidia restarts H200 chip sales to China after export licenses secured
CEO Jensen Huang says purchase orders in hand as manufacturing 'gets fired up' after months of regulatory uncertainty
Nvidia chief executive Jensen Huang announced Tuesday that the chipmaker has received export licenses from the U.S. government and secured purchase orders from Chinese customers, marking a significant breakthrough after months of regulatory hurdles that had temporarily halted production of its H200 AI chips for the Chinese market.
The announcement comes as Nvidia is restarting manufacturing of the H200 processor variant specifically designed for China, with Huang telling reporters the company's supply chain is "getting fired up" to fulfill orders. The H200 chip, featuring 141GB of HBM3e memory, is significantly more powerful than the H20 chip previously available to Chinese customers.
The development represents a major reversal for Nvidia, which had halted H200 production for China in early March after failing to generate revenue from Chinese customers amid blocked shipments by Chinese customs authorities. At that time, the company had reallocated manufacturing capacity to its next-generation Vera Rubin hardware.
The Trump administration had approved exports of the H200 to China earlier this year, reversing years of tight restrictions on advanced AI chip sales. However, the approval came with significant conditions, including a 25% fee to the U.S. government, third-party performance verification requirements, and volume limitations capping sales at approximately 1 million H200 chips and 50% of the volume sold to U.S. customers. Chinese companies had reportedly placed orders for over 2 million H200 chips, suggesting substantial pent-up demand.
Nvidia shares were trading at $181.93 on Tuesday, down 0.7% for the session, despite the positive development. The stock has faced headwinds in 2026, struggling to regain momentum after peaking at $212.17 earlier in the year. Analysts maintain an optimistic outlook, with a consensus target price of $267.54—47% above current levels—reflecting 58 buy ratings and just 2 hold ratings among Wall Street analysts.
The company's market capitalization stands at $4.45 trillion, with trailing revenue of $216 billion and quarterly revenue growth of 73% year-over-year. The China H200 sales are not factored into Huang's broader projection of over $1 trillion in revenue for the company's Blackwell and Rubin chips through 2027, suggesting significant upside potential if the Chinese market returns as a growth driver.
The regulatory breakthrough comes amid ongoing debates in Washington about the effectiveness of AI chip export controls. Some lawmakers have called for greater congressional oversight of export licenses, arguing the current policy is strategically incoherent and difficult to enforce. Meanwhile, China has prioritized AI development in its 15th Five-Year Plan, with domestic tech firms seeking technological independence through alternative suppliers and overseas data centers to access Nvidia chips.
"This resolution removes a significant overhang on Nvidia's growth story," analysts at several investment banks noted in client communications Tuesday. "The Chinese market remains strategically important for AI infrastructure build-out, and Nvidia's ability to navigate the complex regulatory environment demonstrates the strength of its competitive position."
The restart of H200 manufacturing for China could provide an immediate revenue boost as Nvidia works through the substantial order backlog. However, the company faces ongoing challenges, including new draft regulations from the Trump administration that could expand existing restrictions on global AI chip exports, potentially affecting other markets beyond China.
Looking ahead, investors will focus on Nvidia's ability to execute on the Chinese orders while scaling production of its next-generation Blackwell and Rubin platforms for global markets. The company's fiscal third quarter results, expected next month, will provide clarity on whether the China manufacturing restart is translating into actual shipments and revenue recognition.
For now, Huang's announcement signals that Nvidia has successfully navigated one of the most complex geopolitical challenges facing U.S. technology companies, securing a path back to one of the world's largest and fastest-growing AI chip markets. The question now is whether the stock market, which has been largely unimpressed with Nvidia's recent developments, will reward this strategic victory.