Nvidia (NVDA) is weighing a plan to boost output of its high-end H200 AI chip after demand from China jumped past current supply, according to a Reuters report. The move comes just days after U.S. President Donald Trump said trump-says-nvidia-can-ship-h200-chips-to-china-other-countries-thefly">Nvidia could export the H200 chip to China, but with a 25% fee on sales. That shift has drawn attention from Chinese firms that want access to advanced AI hardware.
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China Buyers Rush In
Reuters noted that supply of the H200 is still tight, and companies such as Alibaba (BABA) and ByteDance have expressed interest in buying the chip. Notably, Nvidia relies on Taiwan Semiconductor Manufacturing Co. (TSM) to produce it.
At the same time, China is working to develop its own domestic AI chip sector, and the government has not yet approved any H200 purchases. Reportedly, government agencies held emergency meetings on Wednesday to review the sudden shift in U.S. policy and to weigh the risks and benefits of allowing the chip into the country.
For Nvidia, the stakes are high. The company has long seen strong demand for advanced AI chips in China, but sales were restricted under earlier U.S. export rules. The new policy opens a narrow window for Nvidia to sell one of its most powerful processors into the market, but only if China signs off and only at a steep tariff.
Is NVDA Stock a Buy Now?
Currently, Wall Street has a Strong Buy consensus rating on Nvidia stock based on 39 Buys, one Hold, and one Sell recommendation. The average NVDA stock price target of $258.45 indicates 41.91% upside potential.
