China Opens Door to Nvidia H200 Chips But Questions Outnumber Answers

China has reportedly indicated willingness to approve NVIDIA (NASDAQ:NVDA) H200 chips for import. The timing, conditions, and competitive dynamics present a complex situation for the company’s China market strategy.

Jensen Huang is currently in Shanghai. China is “poised to approve” H200 imports. Questions remain about whether this represents full H200 capability or a version with performance caps, volume quotas, or end-use restrictions limiting commercial deployment.

Nvidia’s Q3 FY2026 earnings call revealed China data center revenue grew sequentially on “export-compliant copper products,” but CFO Colette Kress noted it “remains well below levels prior to the onset of export controls.” Nvidia has been selling export-compliant chips to China for two years, and China previously represented 20-30% of revenue share.

NVDA is up 0.77% over the past week while Advanced Micro Devices (NASDAQ:AMD) surged 12%. Nvidia’s stock has shown limited movement following the news, while AMD has captured significant momentum.

AMD’s MI400 accelerators are shipping alongside Nvidia systems. Intel Corporation (NASDAQ:INTC) CEO Lip-Bu Tan stated Intel was “caught off guard” by AI data center demand and cannot meet supply.

AMD trades at 41x forward earnings with 60% YoY earnings growth and a PEG ratio of 0.56. Nvidia’s forward P/E stands at 25x. The companies show different valuation metrics as the market assesses geopolitical factors.

China’s approval of advanced chip imports occurs amid ongoing technology competition. Domestic alternatives include Alibaba’s T-Head and Baidu’s Kunlunxin processors.

Nvidia insiders have been active sellers. CEO Huang sold 9.9 million shares between October and December 2025. CFO Kress sold over 200,000 shares in the same window, with concentrated selling in mid-December around the approval timeline. No executives purchased stock during this period.

The market’s reaction shows uncertainty about whether China’s H200 approval represents sustainable revenue opportunity. Insider selling activity, AMD’s stock surge, and Nvidia’s limited price movement have occurred alongside the approval news. Geopolitical tensions and China’s regulatory stance remain variables in how this approval impacts Nvidia’s business.

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