Nvidia (NVDA) shares rose in pre-market trading after reports that the chip giant plans to begin exporting its H200 chips to China in mid-February 2026. According to Reuters, Nvidia has told Chinese clients of plans to start shipping its second-most powerful AI chips before the Lunar New Year holiday. While Nvidia is moving forward, Beijing has yet to approve these purchases, which could disrupt plans.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
The company noted that it will use its current stock to fulfill the initial orders. These shipments could total 5,000 to 10,000 chip modules, which equals about 40,000 to 80,000 H200 AI chips, according to sources. Moreover, Nvidia has told its Chinese customers it will expand factory capacity for H200 production, with orders opening in the second quarter of 2026.
Nvidia’s China Exports Hinge on Approvals
A key uncertainty remains for Nvidia’s China export plans, as the company has not yet received an “official go-ahead” from the U.S. government. Earlier this month, the White House announced it would allow H200 exports to China with a 25% cut. If shipments proceed as planned, they would mark Nvidia’s first major deliveries amid the ongoing U.S.-China trade tensions.
Last week, Reuters reported that the Trump administration started reviewing license requests for H200 sales to China, a positive step after Trump’s pledge to approve them. Despite growing concerns and backlash surrounding national security, Trump has allowed such chip exports.
The H200, built on Nvidia’s older Hopper series, is slower compared to the advanced Blackwell and Rubin chips, but remains in high demand for AI workloads. Nvidia’s focus on Blackwell chips has made H200 supply scarce.
Meanwhile, China is trying to reduce reliance on American technology, especially on Nvidia’s AI chips. The country is pushing domestic players like Alibaba (BABA) and Baidu (BIDU) to develop more advanced AI chips, though none comes close to the H200 chips.
Is NVDA Stock a Strong Buy?
Yes, NVDA stock has a Strong Buy consensus rating on TipRanks, based on 39 Buys, one Hold and one Sell rating. The average Nvidia price target of $263.58 implies 45.6% upside potential from current levels. Year-to-date, NVDA stock has surged 34.8%.
