Nvidia stock jumps on signs Beijing is softening stance on AI chip imports

Nvidia stock rose early Friday after reports suggested that Chinese authorities are moving closer to allowing domestic technology companies to purchase the US chipmaker’s advanced artificial intelligence hardware, potentially easing one of the biggest uncertainties hanging over the stock.

At the time of writing, the Nvidia stock was up over

The rally followed a Bloomberg report that Beijing has given in-principle approval to several major Chinese firms, including Alibaba, Tencent Holdings and ByteDance, to begin preparations for potential purchases of Nvidia’s H200 artificial intelligence chips.

The development marked the clearest signal yet that China may be softening its stance after weeks of regulatory ambiguity.

China signals shift after weeks of uncertainty

According to Bloomberg, Chinese regulators have cleared select technology companies to move to the next stage of discussions, allowing them to assess how many H200 chips they would need and to begin conversations around potential orders.

“The companies are now cleared to discuss specifics such as the amounts they would require,” the report said.

As part of the process, Beijing is expected to encourage firms to purchase a certain quantity of domestically produced chips alongside Nvidia’s hardware, though no formal quota has been set.

The move suggests Chinese authorities may be reassessing their approach after a period marked by contradictory signals.

In recent weeks, investors have grappled with reports of paused orders, selective approvals and shifting regulatory guidance, all of which weighed heavily on Nvidia’s stock.

Potential revenue upside draws attention

Analysts say the stakes are high if approvals ultimately translate into firm orders.

KeyBanc analyst John Vinh estimated that Chinese companies could be willing to purchase around 1.5 million H200 chips, which would represent approximately $30 billion in potential revenue for Nvidia.

The H200 is Nvidia’s second-most powerful AI processor and is widely used for training large language models and other advanced artificial intelligence systems.

Access to the Chinese market for these chips has been viewed as critical to Nvidia’s long-term growth, particularly as demand for AI infrastructure continues to expand globally.

Huang visit adds to optimism

The Bloomberg report coincided with a separate CNBC report saying Nvidia Chief Executive Jensen Huang is expected to visit China in the coming days, ahead of the Lunar New Year in mid-February.

Huang is scheduled to attend a company event in Beijing and is also expected to meet with potential customers.

According to the report, those discussions are likely to focus on supply constraints, regulatory conditions and the availability of US-approved chips, including the H200.

The visit has been interpreted by investors as another sign that Nvidia sees momentum building toward a reopening of the Chinese market.

China overhang has capped Nvidia’s stock

Access to China has been the single most persistent factor behind Nvidia’s range-bound trading over recent months.

While the company has continued to report strong global demand for its AI chips, uncertainty over Chinese sales has limited investors’ willingness to push the stock decisively higher.

Chief executive Jensen Huang has repeatedly expressed optimism that US export approvals would allow Nvidia to resume shipments of the H200 chip to China.

That confidence, however, has been undercut by Beijing’s inconsistent messaging and the risk of sudden policy reversals.

Those fears remain fresh after Nvidia took a $5.5 billion inventory write-down last year, when abrupt changes in export rules cut off its ability to sell China-specific chips.

Since then, investors have been wary of assuming that potential approvals will translate smoothly into sustained revenue.

The post Nvidia stock jumps on signs Beijing is softening stance on AI chip imports appeared first on Invezz