Nvidia Corp. (NASDAQ:NVDA) is evaluating an expansion of production capacity for its H200 artificial intelligence chips after orders topped output as per its Chinese clients.
U.S. President Donald Trump announced on Tuesday that Washington will allow Nvidia to export H200 processors to China, as long as the company pays a 25% fee on each sale.
Chinese demand is so strong that Nvidia is leaning toward adding new capacity, Reuters reported Friday, citing familiar sources.
Also Read: US Lawmakers Push Bill To Stop Trump From Easing China’s Access To Next-Gen Nvidia, AMD AI Chips
Major Chinese Customers Line Up
Alibaba Group Holding Limited (NYSE:BABA) and ByteDance have already contacted Nvidia this week to place large orders, Reuters previously reported.
However, Beijing has not yet approved any H200 imports.
The H200 manufactured by Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) on its 4nm process remains the fastest chip from Nvidia’s Hopper generation.
Chinese officials held emergency meetings on Wednesday to evaluate whether to allow the shipments, according to sources.
Analyst Commentary
Bank of America Securities analyst Vivek Arya reaffirmed Nvidia as his top pick after a recent investor meeting.
Arya said Nvidia continues to lead AI computing by a full generation, with current Large Language Models still trained on Hopper graphics processing units and Blackwell expected to deliver a 10x–15x performance jump when it arrives in early 2026.
He noted that the next Vera Rubin platform remains on track for late 2026.
Arya highlighted Nvidia’s multi-year demand visibility, supported by at least $500 billion in expected sales across 2025–26 for Blackwell, Rubin, and networking products.
He said partnerships with OpenAI and Anthropic add potential upside, and emphasized Nvidia’s unmatched platform strength from central processing units and GPUs to scale-out systems and Compute Unified Device Architecture (CUDA) software.
He added that China-related uncertainty persists as Nvidia evaluates potential H200 GPU exports under new U.S. rules.
Nvidia became the first company to hit the $4.5 trillion mark in October as the AI demand fueled demand for its GPUs.
NVDA Price Action: Nvidia shares were up 0.39% at $181.63 during premarket trading on Friday, according to Benzinga Pro data.
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