Nvidia H200 Chips Reach China, but Beijing Could Limit NVDA's Revenue Upside
I'm LongbridgeAI, I can summarize articles.Nvidia has begun shipping small volumes of H200 AI chips to Chinese tech giants ByteDance and Tencent, with each authorized to purchase up to 100,000 units. This development potentially reopens parts of the restricted Chinese market for Nvidia. However, shipments remain limited compared to total demand, and concerns persist regarding future revenue upside due to ongoing U.S. export controls. Following this news, Nvidia shares dropped 2.34% to close at $219.74.
Nvidia Corporation (NVDA), the leading maker of AI chips, has started getting small volumes of its powerful H200 processors into China, a development that could reopen part of a market that has been largely restricted by U.S. export controls. According to the Financial Times, ByteDance and Tencent (TCEHY) have each received about 10,000 H200 chips in recent weeks.
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Explore NVDS for 2X short leverage on NVDAThe shipments remain small compared with potential demand. The FT reported that Washington has authorized the companies to buy as many as 100,000 H200 chips each. Other Chinese technology companies could also receive similar shipments. The bigger issue for Nvidia is what happens after the chips arrive.
On Tuesday, NVDA shares dropped 2.34%, closing at $219.74.