Nvidia Secures US Export License for Limited H200 Shipments to China
Nvidia Secures US License for Limited H200 Chip Shipments to China
Nvidia Corp., a leading manufacturer of artificial intelligence accelerators, has obtained a license from the US government to export a limited number of its less advanced H200 chips to customers in China. The license is subject to 25% duty and US inspection. However, it remains uncertain whether the Chinese government will permit the import of these chips.
Nvidia has chosen not to include any China data-center revenue in its first-quarter sales outlook, citing uncertainty over the regulatory environment. The company's shares were little changed in after-hours trading.
A $50 billion AI chip market in China, which Nvidia's CEO, Jensen Huang, has identified as a significant growth opportunity, remains restricted due to a political standoff between Beijing and Washington. Nvidia's local rivals, including Huawei Technologies Co., Cambricon Technologies Corp., MetaX Integrated Circuits Shanghai Co., and Moore Threads Technology Co., are receiving support from the Chinese government.
Nvidia's CFO, Colette Kress, has noted that Chinese chipmakers have the potential to disrupt the global AI industry over the long term. Recent reports suggest that Chinese officials have informed the country's largest tech firms, including Alibaba Group Holding Ltd., that they can prepare H200 orders, indicating that Beijing may be close to formally approving imports of essential AI components.
Investor Takeaway
Nvidia's ability to return to the Chinese market remains uncertain.
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