Chinese regulators have reportedly instructed some of the country’s biggest technology purveyors to submit orders for Nvidia’s H200 AI chips for approval, according to a report by Bloomberg, citing “people familiar with the situation.” This could mark a turning point for Nvidia, which had previously been shut out of this lucrative market. <\/p>\n
![\"Nvidia](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/01\/1769264409_91_.png\"\/)
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Image source: Nvidia.<\/p>\n
These well-known Chinese companies, including Alibaba, Tencent, and former TikTok parent ByteDance, have been told they will be required to buy a certain percentage of domestic chips as part of the conditional approval, according to the report.<\/p>\n
Previous reports suggested that Chinese regulators would prohibit the use of these advanced chips in military applications, government agencies, critical infrastructure, state-owned businesses, or other applications that might raise security concerns. <\/p>\n
A back-of-the-envelope calculation<\/p>\n
This could be an important develop for Nvidia and its shareholders. In 2024, sales of lower-quality AI chips to Chinese customers totaled $17.1 billion, despite a moratorium on the sale of its state-of-the-art AI chips. In early 2025, U.S. export restrictions announced by the Trump Administration resulted in an $8 billion hit to sales. <\/p>\n
CEO Jensen Huang recently said there was “very high” demand for H200 chips in China. He suggested that if the imports were approved, the resulting sales could surpass $50 billion per year. <\/p>\n
A Reuters report suggests Nvidia has already received orders for 2 million H200 chips from Chinese customers, at a cost of $27,000 each. If accurate, it would result in incremental revenue of $54 billion, which seems to support Huang’s assertion. <\/p>\n
This total would be reduced by the 25% export levy required by the Trump Administration, leaving Nvidia with $40 billion in incremental revenue from existing orders. <\/p>\n
![\"Nvidia](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/01\/1769264409_458_.png\"\/)
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Today’s Change<\/p>\n
(1.53%) $2.83<\/p>\n
Current Price<\/p>\n
$187.67<\/p>\n
Key Data Points<\/p>\n
Market Cap<\/p>\n
$4.6T<\/p>\n
Day’s Range<\/p>\n
$186.82 – $189.60<\/p>\n
52wk Range<\/p>\n
$86.62 – $212.19<\/p>\n
Volume<\/p>\n
143M<\/p>\n
Avg Vol<\/p>\n
187M<\/p>\n
Gross Margin<\/p>\n
70.05%<\/p>\n
Dividend Yield<\/p>\n
0.02%<\/p>\n
Nvidia hasn’t included any sales to China in its forecast, which would materially increase the company’s outlook. Huang previously said Nvidia had an AI chip sales backlog of $500 billion for the six quarters ending in early 2027. CFO Colette Kress has since upped the ante. At an investor event in early January, she said, “The $500 billion has definitely gotten larger.” <\/p>\n
Analysts’ consensus estimates for Nvidia’s fiscal 2027 (beginning later this month) call for revenue of $320 billion. $40 billion of incremental revenue at a 56% net profit margin could drive Nvidia’s earnings per share (EPS)<\/a> to $8.29. A current price-to-earnings (P\/E) ratio<\/a> of about 46 would imply a share price of $385, representing potential gains of 105% compared to Friday’s closing price.<\/p>\n This could be a windfall for Nvidia and its shareholders.<\/p>\n","protected":false},"excerpt":{"rendered":"This could be a major catalyst for the AI chipmaker. The past year has been fraught with uncertainty…\n","protected":false},"author":2,"featured_media":255464,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":["post-255463","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-il","tag-israel","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/255463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=255463"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/255463\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/255464"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=255463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=255463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=255463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}