New York, Jan 18, 2026, 17:59 EST — Market closed.
Suppliers of Nvidia’s H200 AI chips have stopped making crucial components after Chinese customs barred shipments from arriving, the Financial Times reported Friday. The H200, a top-tier data-center processor for AI training, was slated to see over 1 million orders from Chinese buyers, according to the report. 1
Nvidia shares ended Friday down 90 cents, or roughly 0.5%, closing at $186.23. The news drops ahead of a long weekend, giving investors a moment to weigh if this is just a brief customs hiccup or a deeper hit to Nvidia’s China-related demand.
U.S. stock markets are shut Monday for Martin Luther King Jr. Day, pushing the next trading day to Tuesday. This pause is key for Nvidia, where access to China has turned into a major swing factor. Policy cues there now often shift expectations quicker than product launches. 2
This week, the Trump administration formally approved China-bound sales of the H200 chip but imposed third-party testing and set limits based on supply for U.S. customers. Officials argued the approved exports could undercut competitors like Huawei. Nvidia praised the decision, calling it “a thoughtful balance that is great for America.” Jay Goldberg, an equities analyst at Seaport Research, dismissed it as “a Band-Aid, a temporary attempt to cover the huge gap” in U.S. export policy. 3
China’s central government is reportedly drafting rules that would limit how many advanced AI chips domestic firms can buy from overseas suppliers, Nikkei Asia said. The move might permit some transactions instead of imposing a total ban. Nvidia has declined to comment, Reuters reported. 4
The broader chip group managed to hold its ground heading into the weekend, with the iShares Semiconductor ETF gaining roughly 1.6% on Friday. Nvidia, however, ended the day in the red, diverging from the sector’s upward move on the final trading day before the holiday break.
The downside is obvious. China hasn’t offered a public explanation for its customs move and hasn’t confirmed an official ban, leaving suppliers and buyers in the dark on timing and scope — uncertainty that can disrupt order planning and inventory choices. 5
Investors are closely monitoring any statements from Nvidia or Chinese authorities regarding whether the H200 entry restrictions are temporary or permanent, and if suppliers will resume production. Nvidia’s fourth-quarter fiscal 2026 earnings report is set for Feb. 25, a key moment likely to intensify scrutiny on China’s role in driving growth. 6
