This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) told Chinese clients that it may expand production of its H200 artificial intelligence chips, according to a Reuters report.
Demand for the processor has exceeded current supply, the sources said. Interest has come from major technology firms, including Alibaba (NYSE:BABA) and ByteDance. The H200 chip is produced by Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), one of Nvidia’s key manufacturing partners.
The update follows comments earlier this week from U.S. President Donald Trump, who said the administration will permit Nvidia to export the H200 processor to China, subject to a twenty-five percent fee on sales. Industry analysts say the tariff could influence order volumes and the timing of shipments.
Chinese authorities have yet to approve purchases. Officials held emergency discussions on Wednesday to review the import request and assess the potential impact on the country’s domestic AI chip plans, Reuters reported, citing multiple people familiar with the talks.