NEW YORK, Jan 14, 2026, 13:59 EST — Regular session
- Nvidia shares slid after a report China is blocking imports of its H200 AI chip
- The move clashes with a fresh U.S. export greenlight and is drawing political blowback
- Traders are watching for Beijing’s next signal and Nvidia’s Feb. 25 results
Nvidia (NVDA.O) shares fell 2.2% to $181.77 in afternoon trading on Wednesday after Reuters reported Chinese customs officials were told the company’s H200 artificial intelligence chips are not permitted to enter China. Chinese officials also summoned domestic technology companies and warned them not to buy the chips unless necessary, while exemptions for universities and research work were being discussed, the report said. Rhodium Group strategist Reva Goujon said Beijing was “pushing” for bigger concessions ahead of U.S. President Donald Trump’s planned April visit. (Reuters)
That matters now because Washington had just cleared China-bound H200 sales under a new rule, putting China back in play for a stock that trades on AI data-center demand. The regulation requires third-party testing and strict “know your customer” checks — controls meant to verify the end user — and caps China volumes at no more than 50% of the number sold to U.S. customers; Trump said last month the U.S. would take a 25% fee on the sales. Chinese tech companies have ordered more than 2 million H200 chips priced around $27,000 each, far above Nvidia’s inventory of about 700,000, and Seaport Research analyst Jay Goldberg called the framework a “Band-Aid” as Saif Khan said it could “substantially boost China’s AI capabilities.” (Reuters)
The U.S. shift is already drawing heat in Washington. At a congressional hearing on Wednesday, Matt Pottinger, a former Trump White House Asia adviser, said the administration was on the “wrong track” and urged Congress to add guardrails around advanced AI chip exports. Jon Finer, who served as deputy national security adviser under Joe Biden, warned the rule would add workload for the Commerce Department and depend on Chinese buyers making truthful statements about their own customers. (Reuters)
The headline tugged at a chip sector that was already soft. The iShares Semiconductor ETF was down 1.5% in afternoon trading, while Advanced Micro Devices (AMD.O) was up 0.2% and Intel (INTC.O) rose 2.3%.
For investors, it is the kind of clash that is hard to model: Washington can loosen the rules and Beijing can still stop the shipment. H200 is a high-end data-center chip used to train large AI models, and those sales can swing sentiment fast.
Nvidia has been trying to keep customers on the hook even as the policy line moves. A spokesperson said the company does not require upfront payment for H200 chips and “would never require customers to pay for products they do not receive,” pushing back on a Jan. 8 Reuters report about full-payment terms. (Reuters)
But the downside scenario is plain enough. If China keeps the H200 at the border, or narrows approvals to a sliver of research use, revenue that bulls had started to pencil in can get deferred — or disappear.
Enforcement is another question mark. The U.S. rule leans on testing, screening and sales-linked caps, and those mechanics have been difficult to police in past rounds of chip restrictions.
Investors will be looking for a clean signal from Beijing — a formal policy or a clear set of exemptions — before they treat the U.S. approval as anything more than ink on paper.
The next scheduled catalyst is Nvidia’s fourth-quarter fiscal 2026 results on Feb. 25, when investors will listen for any change in China demand, shipment timing and supply plans. (NVIDIA Investor Relations)
