Beyond the $1 trillion forecast: Nvidia resumes expansion into China's AI market

Nvidia has forced its way back into China's critical AI market by resuming production of its H200 gas pedals and preparing for local launch new coprocessors based on technology from startup Groq. Potential revenue from their sales has not yet been factored into the company's medium-term financial model.

Nvidia has obtained licenses to sell the H200 chip, designed for training neural networks, to "many customers in China" and is in the process of "restarting production," the company's head Jensen Huang said, his statement quoted by Bloomberg. Huang noted that the situation has changed over the past "couple weeks." Although the chip is based on Nvidia's previous-generation architecture, its processing power is superior to its counterparts available in the domestic Chinese market.

Nvidia is also preparing to expand into the highly competitive Chinese market for processors to run already-trained AI models, integrating technology from startup Groq, which was actually absorbed in a $17 billion deal, Reuters' interlocutors said. Nvidia has no intention of cutting the power of Groq's coprocessors for China, they said. The chipmaker dominates the neural network training market, but in the segment of chips for generating responses to user queries, the company has to compete with Baidu and other local manufacturers, the agency notes. With manufacturing support from Samsung Electronics, Nvidia plans to bring Groq chips to market in the second half of 2026.

Nvidia received US President Donald Trump's approval to sell the H200 to Chinese customers back in December 2025, but has yet to record any revenue from these shipments. Strict administrative barriers from Washington remain a deterrent.

In February, the company reported that the U.S. had granted it only one license to ship a small batch of H200 to China. In addition, supplies may be limited to a quota of 75 thousand chips per customer. At the same time, the potential revenue in China is not yet included in the financial forecast Nvidia until 2028, according to which its total sales should reach $1 trillion, states Reuters.

Although Nvidia's sales are breaking records, the capitalization of the world's most expensive company has fallen by 2.5% since the beginning of 2026. In over-the-counter trading on March 18 in the U.S., the stock is adding 0.8%. According to FactSet, almost all analysts (65 out of 70) recommend securities of the technology giant to buy. The average target price of $267.9 calculated by the service implies a 47% growth in quotations over the year.

This article was AI-translated and verified by a human editor