New developments suggest Nvidia could be close to resuming H200 sales in China.
- Nvidia clarified that it has not asked Chinese customers to pay up front for its H200 chips, as Reuters reported earlier.
- Retail investors saw Nvidia’s comment as a positive signal and speculated that the company could be close to resuming sales.
- The technology trade dispute has been a years-long issue between Washington and Beijing, which has hammered Nvidia’s business in China.
Shares of Nvidia Corp. rose 0.4% in the early premarket session on Tuesday, amid a bullish signal regarding its China business.
The AI chipmaking giant refuted an earlier report claiming it was asking Chinese customers for complete upfront payments for its H200 chips, even as regulatory issues have kept those sales on pause.
In a response to Reuters, which broke the story, an Nvidia spokesperson said the company “would never require customers to pay for products they do not receive."
Retail’s Reaction
On Stocktwits, retail investors view Nvidia’s clarification as a positive signal, fueling speculation that Beijing is close to re-allowing H200 sales. In recent weeks, reports have emerged forecasting China’s imminent approval, while Nvidia’s management told analysts at the CES trade show that Chinese demand for its chips remained strong despite uncertainties.
“Making H200 chips easier to grab = massive U.S. sales to China + global AI dominance. Let's go!” a user commented.
Retail sentiment for NVDA, however, climbed a few notches lower in the ‘bullish’ zone as of early Tuesday, as compared to the previous day.
China Uncertainty
Nvidia’s sales in China have now been upset for years amid U.S.-China diplomatic and trade tensions. The Biden administration had banned the export of advanced AI chips to China, but President Donald Trump reversed that policy last month, allowing H200 sales with a 25% fee paid to the U.S. government.
Previously, Nvidia had to write down $5.5 billion in inventory after the Trump administration expanded the ban to include Nvidia’s H200 chip, the most powerful processor the company was previously allowed to sell in China.
The China holdup remains a major issue for Nvidia investors; pending a clear or official signal, the stock has declined about 11.3% since its lifetime high of $206.88 on Nov. 3.
Latest Developments
In other news, Nvidia on Monday announced a collaboration with drug giant Eli Lilly for a new AI lab for advanced drug development. It also announced a collaboration with the life sciences tools company Thermo Fisher and launched new models in its BioNeMo program, an open development platform for AI-driven biology and drug discovery projects.
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