This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) shares inched up 1.5% on Wednesday morning after reports that Chinese authorities have approved the first batch of the company’s H200 artificial?intelligence chips for import.
The clearance comes as Beijing balances its need for cutting?edge AI computing power with longer?term goals of bolstering domestic semiconductor development.
The initial approvals cover several hundred thousand H200 units, and the allocations were granted during Nvidia Chief Executive Jensen Huang’s visit to China this week, the sources said. The recipients were not identified because of the sensitive nature of the matter.
The H200 is one of Nvidia’s most powerful AI accelerators and has been a focal point in U.S.?China tech policy discussions amid longstanding export controls. Nvidia earlier secured U.S. approval to export the chips to China under strict conditions, but final sign?off from Chinese regulators had been uncertain.
The market analysts indicate that the action would alleviate some of the initial geopolitical headwinds of the Nvidia data-center business, but that the regulatory environment remains quite complex and is subject to future alteration with further policy changes.