Nvidia plans to start shipping H200 AI chips to China by mid-February - Reuters
The company's shares were up more than 1 percent in trading on Dec. 22
AI chip maker Nvidia has informed Chinese customers that it intends to start shipping its second most powerful processors to China before the Lunar New Year (falling on February 17 this year). This was reported by three sources to Reuters.
Details
According to the two agency sources, Nvidia plans to use the existing stock at the warehouses at the first stage. Total shipments, according to the sources, will amount to 5,000 to 10,000 modules, which is equivalent to about 40,000-80,000 H200 chips.
Nvidia has also notified Chinese partners of plans to ramp up production capacity for these chips, the agency's third source said. Acceptance of orders for new volumes, according to him, should start in the second quarter of 2026.
However, Chinese authorities have not yet approved any H200 purchases, and the timing could change depending on political decisions, all three Reuters interlocutors emphasized. Nvidia and China's Ministry of Industry and Informatization did not respond to the agency's requests for comment.
Shares of Nvidia were up 1.7% to $184.16 in trading on Monday, December 22nd.
Context
If the deliveries take place, they would be the first official H200 shipments to China since U.S. President Donald Trump said in December that such sales would be allowed, provided a 25 percent export tax is paid. Reuters reported last week that the Trump administration had begun considering export licenses for H200 shipments to China. The decision represents a sharp turnaround from the policy of the Joe Biden administration, which had previously banned shipments of advanced AI chips to China altogether, citing national security threats.
Nvidia shares are up 36% in 2025. Analysts are almost unanimously recommending buying: the stock has 54 Buy ratings and nine Overweight ratings versus only five Hold and one Sell. The average target price for the stock is $260.6: it implies a 44% upside from the last closing price.
This article was AI-translated and verified by a human editor
