Nvidia (NVDA) shares rose nearly 2% in midday trading after The Information reported that China had approved tech companies purchasing H200 GPUs in some cases.
The Chinese government told some local companies that H200 AI accelerators could be purchased under special circumstances, citing examples as university research or development labs, the news outlet added, citing two people with direct knowledge of the situation. The missive from Chinese government officials was also vague, as they told the companies to buy the products if it was “necessary,” but did not specify what necessary meant, the news outlet added.
Additional meetings between the Chinese government and tech companies are expected on the matter, the sources said.
Nvidia did not immediately respond to a request for comment from Seeking Alpha.
China reportedly told some of its tech companies earlier this month to halt orders of Nvidia’s H200 GPUs before the government made a decision on whether to allow the chips to be sold in the country.
Nvidia CEO Jensen Huang said earlier this month week he did not believe the Chinese government will make a formal declaration that it has allowed Chinese companies to import the chipmaker’s H200 GPUs. Instead, the proof would come through purchase orders.
Last year, President Donald Trump approved the sale of some advanced AI chips, including Nvidia’s H200 GPUs, to China. The H200 is the predecessor to its current flagship Blackwell chips and the upcoming Vera Rubin.
Nvidia’s CFO Colette Kress told analysts during a meeting at CES 2026 in Las Vegas last week that license applications for the H200 had been filed, and the government was deciding what it wants to do with them. Huang had described the demand for the chips as strong.