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.

The Approval That Isn’t Really an Approval

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 Market Response

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…