Nvidia's China Sales Show Signs of Life Amid Easing Restrictions

Nvidia's shares have been on a three-day losing streak, but the company's fortunes may be turning in China. According to a Financial Times report, ByteDance and Tencent each received about 10,000 H200 processors in recent weeks.

The report also stated that Nvidia has roughly 500,000 H200 chips in inventory, largely intended for Chinese customers. Sales had been delayed due to Beijing's restrictions, but now companies like Lenovo are telling their Chinese customers that they can resume placing orders for products containing H200 chips.

Chinese regulators have allowed companies to ship the processors to Hong Kong, and the U.S. has cleared ByteDance and Tencent to purchase up to 100,000 H200 chips each. However, Beijing wants them to keep most of those chips outside mainland China to support domestic chipmakers.