Nvidia Sees Surprise Boost from Chinese Chip Sales
Nvidia's return to China has been met with surprise as small batches of its H200 chips have been allowed to enter mainland China. According to the Financial Times, ByteDance and Tencent each received about 10,000 H200 processors in recent weeks, while a few other Chinese technology firms could soon secure similar shipments.
The U.S. has cleared the companies to purchase up to 100,000 H200 chips each, but Beijing wants them to keep the hardware outside mainland China to support the growth of domestic chipmakers. However, Chinese regulators have told companies they can ship the processors to Hong Kong and use them there.
This development bodes well for Nvidia's quarterly results on August 26, as it means the company will start to recognize chip sales to China customers. The market is already forecasting EPS of $2.35 on revenue of $103.4 billion for the October 2026 quarter.