US is to allow Nvidia H200 chip exports to China.
Some analysts view such a move as a “strategic win-win,” arguing that allowing H200 shipments would sustain China’s reliance on U.S. AI infrastructure — and potentially slow down the adoption of domestic alternativesThe H200 is more capable than the chip China is currently allowed to buy (the H20), which gives it technical appeal for high-demand applications (large-model training, inference, data-center use cases)
Although good news, Jensen Huang, recently said he is not sure China would accept H200 even if restrictions are eased — Beijing may prefer home-grown chips or chips already certified under export rules. Chinese firms and regulators appear increasingly focused on domestic AI-chip makers (like Cambricon Technologies) and building self-sufficiency. There’s growing pressure—both economic and political—on companies not to rely solely on foreign hardware.
Nvidia shares have moved higher and are up $3.90 or 2.15% at $186.46.
This article was written by Greg Michalowski at investinglive.com.