New York, January 14, 2026, 08:15 EST — Premarket
- Nvidia shares dropped roughly 0.7% in premarket trading following reports that China’s customs officials have barred its H200 chips from entering the country
- The U.S. laid out rules this week for H200 exports to China, yet Beijing’s position is still uncertain
- Investors await clearer signals on China’s policy and Nvidia’s earnings report on Feb. 25, hoping for insights into shipment trends
Nvidia shares dipped about 0.7% in premarket trading Wednesday ahead of the 9:30 a.m. ET open. Sources said China’s customs agents have been instructed to block the company’s H200 AI chips from entering the country. The stock last traded near $184.5, after closing Tuesday up 0.5% at $185.81. (Reuters)
This move comes a day after Washington officially approved exports of the H200 chip to China under new export controls—rules that restrict what companies can sell abroad—fueling investor optimism that Nvidia might resume shipments to a crucial market. The U.S. regulation demands third-party testing and other safeguards, limits volumes to a fraction of U.S. sales, and prohibits military use. Nvidia described the policy as “striking a thoughtful balance,” while Seaport Research analyst Jay Goldberg dismissed it as merely a “Band-Aid.” (Reuters)
Beijing’s stance remains unclear. This week, China informed certain tech firms that H200 purchases would be approved only under “special circumstances,” like university research, according to the Information. At the same time, the Chinese embassy in Washington emphasized that smooth economic and technology cooperation benefits both nations. (Reuters)
The Wall Street Journal reported that U.S. officials are imposing fresh security measures on any restart. Buyers must demonstrate safeguards, and Nvidia needs to confirm sufficient domestic supply. Additionally, there’s a 25% surcharge linked to sales destined for China. (The Wall Street Journal)
Nvidia has been pushed into quick tactical adjustments in China amid changing regulations on both sides. On Tuesday, the company told Reuters it does not ask for upfront payment on H200 chips and “would never require customers to pay for products they do not receive,” responding to a previous report about unusually strict payment terms for Chinese orders. (Reuters)
Setting aside tensions with China, Nvidia is spotlighting fresh demand drivers. On Monday, Nvidia and Eli Lilly revealed plans to invest $1 billion over five years in a joint research lab near the San Francisco Bay. The facility will leverage Nvidia’s upcoming Vera Rubin chips. Kimberly Powell, Nvidia’s healthcare VP, noted that both companies are committing “incremental resources,” with the lab’s location expected to be announced in March. (Reuters)
Traders are left wondering if China’s move signals a temporary pause or a full halt. A source familiar with the customs directive called the language so strict it amounts to “basically a ban for now,” though officials have kept the door open for adjustments.
Analysts tracking the U.S.-China tensions suggest Beijing could be angling to strengthen its position before President Donald Trump’s scheduled April trip to meet Xi Jinping. “Beijing is … pushing to see what bigger concessions they can get,” said Rhodium Group strategist Reva Goujon.
The downside is straightforward. If China imposes a formal block, the U.S. green light becomes mostly theoretical. On top of that, new calls in Washington for stricter controls could push the limits even higher, even if Beijing backs down.
Investors are zeroing in on two upcoming triggers: China’s potential update on purchase guidance in meetings with firms, and Nvidia’s earnings release set for Feb. 25. That report will probably bring tough questions about demand in China and shipment schedules. (Tradingview)
