Shares of Nvidia rose in early U.S. trading after reports surfaced that the U.S. Department of Commerce has granted export approvals allowing about 10 Chinese companies to acquire the H200, Nvidia’s second-most powerful AI chip. The stock moved higher in premarket trade, reflecting investor attention on the potential reopening of a constrained China market.
The approvals do not yet equate to shipments. According to the report, no H200 deliveries have been completed so far as Nvidia’s chief executive pursues renewed sales momentum during a visit to China this week. That trip, characterized in coverage as high-stakes, included the CEO joining a White House delegation after an invitation from President Donald Trump.
Market observers noted that shares climbed 1.8% in Thursday premarket trade. A market snapshot included with the report also showed Nvidia quoted with a different intraday move.
Who received approvals
The Commerce Department’s approvals reportedly cover roughly 10 Chinese firms, including major internet platforms named in the coverage: Alibaba, Tencent, ByteDance and JD.com. In addition, a handful of distributors are said to have been authorized to handle the chips, with Lenovo and Foxconn among those listed.
Under the reported approvals, each authorized buyer may obtain up to 75,000 H200 chips either directly from Nvidia or via approved intermediaries. Lenovo confirmed it is "one of several companies approved to sell H200 in China as part of Nvidia’s export license," according to the reporting.
Why shipments have not followed approvals
Despite the U.S. clearances, the coverage stated that no deals have closed. Chinese companies have pulled back from purchases following guidance issued in Beijing, and there is growing pressure within Chinese authorities to either block or more tightly scrutinize the orders. The reporting adds that part of the shift was prompted by changes on the U.S. side, though what precisely changed was not specified.
Prior to recent export constraints, Nvidia reportedly commanded roughly 95% of China’s advanced AI chip market. China has previously represented a meaningful slice of Nvidia’s revenue - once about 13% - and Nvidia’s CEO has estimated the country’s AI market could be worth $50 billion this year.
Context for markets
- Stock moves: Nvidia shares showed a premarket uptick tied to the reports.
- Potential buyers and distributors: Alibaba, Tencent, ByteDance, JD.com, Lenovo and Foxconn were named among those approved.
- Regulatory uncertainty: Approvals exist, but shipments remained on hold due to guidance and scrutiny in China and unspecified changes on the U.S. side.