China has told some technology companies that they will only be allowed to buy Nvidia’s (NVDA) H200 AI chips in special situations, such as for university research and development, according to The Information. This shows that Beijing is taking a tougher stance on reopening its market to U.S. chipmakers. In fact, just last week, Chinese officials asked companies to pause their H200 orders while the government decided on new rules. At that time, officials were even considering forcing companies to buy domestic chips alongside any Nvidia chips they wanted to purchase.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Now, the latest guidance suggests that China may have decided that protecting its own chip industry is more important than giving local AI firms access to advanced U.S. technology. However, the government’s message was deliberately unclear, telling companies to only buy the chips when “necessary” without explaining what that really means. That leaves open the possibility that China could loosen its stance later if relations with the United States improve.
This shift comes just one month after President Donald Trump said that Nvidia could sell the H200 to China, rolling back some restrictions put in place under the previous administration. Although the H200 is one generation behind Nvidia’s Blackwell chips, which are still banned from China, it is the most advanced AI chip Chinese companies are allowed to buy. Demand had been high, with server makers placing large orders and Nvidia asking TSMC to increase production. However, China’s push to become self-sufficient in semiconductors now appears to be limiting access.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 39 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $264.97 per share implies 43.2% upside potential.
