The U.S. government has authorized the sale of Nvidia Corp.'s (NASDAQ:NVDA) powerful H200 AI chips to 10 Chinese tech giants, including Alibaba Group Holding Ltd. ADR (NYSE:BABA) and Tencent Holdings ADR (OTC:TCEHY), but Beijing's intervention has brought deliveries to a complete standstill.
Deals In Limbo Despite US Green Light
The U.S. Commerce Department cleared around 10 companies, including ByteDance and JD.com Inc. (NASDAQ:JD), along with distributors like Lenovo Group Ltd. (OTC:LNVGY) and Foxconn Technology Co. Ltd. (OTC:FXCOF), to purchase the coveted H200 chips, according to Reuters.
Lenovo confirmed it "is one of several companies approved to sell H200 in China as part of Nvidia‘s export license." Each approved customer can buy up to 75,000 chips.
However, not a single delivery has been made. Reuters reports that Chinese firms pulled back following government guidance. Beijing is increasingly focused on cultivating homegrown AI alternatives, such as Huawei, to eliminate foreign tech dependencies.
U.S. Commerce Secretary Howard Lutnick highlighted this blockage, stating that “the Chinese central government has not let them, as of yet, buy the chips, because they’re trying to keep their investment focused on their own domestic industry.”
Huang Seeks Summit Breakthrough
The impasse prompted Nvidia CEO Jensen Huang to make a last-minute addition to President Donald Trump's delegation to Beijing.
Caught between dueling national priorities, Huang is hoping the high-stakes summit between Trump and Chinese President Xi Jinping will unlock the stalled deals, which he previously estimated could tap into a $50 billion Chinese AI market.
Complex Conditions And Criticisms
The path to a completed sale is obstructed by thorny requirements on both sides. U.S. rules mandate strict security procedures for Chinese buyers.
Furthermore, a Trump-negotiated arrangement requires the U.S. to take a 25% revenue cut from the sales, prompting security unease in Beijing.
Meanwhile, U.S. hardliners are actively slamming the approved deals. Chris McGuire of the Council on Foreign Relations argued that such sales mean “a smaller U.S. lead in AI over China,” adding, “It is remarkable that President Trump keeps getting convinced to put Nvidia's interest ahead of America's.”
How Has Nvidia Performed In 2026?
Shares of LMT have risen by 21.09% year-to-date, while the Nasdaq 100 has advanced by 16.51% over the same period. It closed 2.29% higher on Wednesday at $225.83 apiece, and it was 2.21% higher in premarket on Thursday.
Over the last month, NVDA was up 19.29%, and it rose 20.86% over the last six months. Benzinga’s Edge Stock Rankings indicate that NVDA maintains a strong price trend in the short, medium, and long terms, with a poor value ranking.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Below the Sky / Shutterstock
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