By Danny Vena, CPA
Publication Date: 2026-01-09 18:29:00
This could be a massive catalyst for the chipmaker.
After previously banning Nvidia‘s (NVDA 0.10%) H200 artificial intelligence (AI) chips, the Chinese government appears poised to approve the import of these processors, according to a report by Bloomberg, which cited “people familiar with the situation.” This would mark the reentry into an important market for the chipmaker.
Regulators will reportedly permit the sale of these older-generation AI chips to commercial and technology customers, although details remain sketchy. There will be limitations, however. China will prohibit the use of these chips from government agencies, military applications, critical infrastructure, state-owned businesses, or other applications that may pose security concerns, according to the report.
Image source: Nvidia.
A $50 billion opportunity?
The stakes are high. In calendar 2024, which marked the last full year of sales to China, Nvidia’s revenue from the country was $17.1 billion — despite existing export restrictions against the sale of its top-of-the-line chips. Early last year, Nvidia estimated it took an $8 billion revenue hit due to increased U.S. export restrictions.
CEO Jensen Huang previously stated that there was “very high” demand for the chips in China, and suggested that sales there could top $50 billion per year if approved. That figure could well be conservative.
The company already has orders from Chinese customers for more than 2 million H200 chips and plans to charge…
