China is preparing to restrict access to Nvidia’s (NVDA) advanced H200 chips, even after U.S. President Donald Trump signaled approval for their export to Chinese buyers, the Financial Times reported. While no final decision has been made, it reflects Beijing’s strategy to bolster local chipmakers while controlling reliance on U.S. technology.
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According to the report, Chinese regulators are considering rules that would limit which companies can purchase Nvidia’s H200 processors. Buyers may be required to seek government approval and justify why domestic chips are insufficient for their needs.
Officials are also considering blocking government departments from acquiring the H200 altogether, reflecting a broader strategy to reduce reliance on American technology.
Why the H200 Matters
The H200 is Nvidia’s second‑most powerful AI chip, capable of training and running complex models with higher memory bandwidth than earlier versions. It was previously banned under U.S. export controls due to concerns it could be used in military systems.
For Chinese tech giants like Alibaba (BABA), Tencent (TCEHY), and ByteDance, access to Nvidia’s hardware remains crucial for advanced AI development.
In the meantime, China has leaned on domestic chipmakers, such as Huawei, offering subsidies to data centers that adopt local processors and tightening customs checks on imports.
Is NVDA a Strong Buy?
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. Further, the average Nvidia price target of $258.00 per share implies 39.57% upside potential.
