During a congressional hearing, Jeffery Kessler, the Under Secretary of Commerce for Industry and Security, stated that 'very few' Nvidia H200 chips have been shipped to China and Hong Kong. This remark suggests that shipments have restarted, which may positively impact Nvidia's sales, particularly as the company has previously excluded Chinese AI chip revenue from its forecasts.
CEO Jensen Huang had advised investors to 'expect nothing' from Chinese sales, highlighting the challenges Nvidia faces due to U.S.-China trade tensions. The H200 chip, part of Nvidia's older Hopper generation, is subject to strict export controls, with licenses issued on a case-by-case basis to ensure compliance with national security requirements.
While the U.S. government has allowed some shipments, it remains uncertain whether China will approve large-scale imports of these chips. If Nvidia's chips are not available, Chinese companies may have to rely on domestic alternatives, which are generally viewed as less effective for AI training