By Faizan Farooque
Publication Date: 2025-11-24 11:21:00
This article first appeared on GuruFocus.
Nvidia (NVDA, Financials) triggered a pullback in Chinese semiconductor stocks after reports that U.S. officials were considering allowing the company to sell its H200 artificial intelligence chip in China. The discussions come as Washington and Beijing continue to look for areas where trade tensions can ease.
The possibility of expanded sales weighed on major Chinese chipmakers. Semiconductor Manufacturing International Corp fell as much as 7% in Hong Kong trading, while Hua Hong Semiconductor slipped nearly 6%. Shares of Cambricon Technologies, a domestic AI chip designer, also weakened early before stabilizing.
The H200 is estimated to be about twice as powerful as Nvidia’s H20 chip, which is currently the highest-performance model permitted for sale in China under U.S. export rules. Allowing the more advanced version could shift demand away from local firms working to build competitive AI processors and complicate China’s efforts to strengthen its domestic technology base.
