NVDA H200 Chips Approved for 10 Chinese Buyers; Jensen Huang in Beijing During Trump-Xi Summit

In a dramatic reversal of months of tension over semiconductor export controls, the US government approved NVIDIA to sell its H200 artificial intelligence chips to 10 named Chinese companies. The news coincided with CEO Jensen Huang's presence at a state banquet in Beijing where President Donald Trump and President Xi Jinping dined together on May 14, 2026. This confluence of events signals a negotiated thaw in US-China AI chip competition, at least temporarily, and removes a key supply constraint that has limited Chinese AI infrastructure investment.

The H200 approval directly impacts NVIDIA's revenue growth and valuation. For months, the company has been barred from selling its most advanced chips to China due to national security restrictions, forcing Chinese AI laboratories and cloud providers to rely on older architectures or domestic alternatives like Huawei's Ascend chips. By opening H200 sales to 10 specific customers, the US simultaneously allows NVIDIA to capture revenue from the world's second-largest AI market while maintaining a veneer of export control. NVIDIA shares rose on the announcement, extending a seven-day rally of over 20% that has pushed the company's market cap to nearly $5.5 trillion.

The implication for US-China relations is subtle but material. The approval is not a full deescalation (the US is still restricting next-generation chips and requiring Chinese buyers to obtain export licenses) but rather a tactical permission that allows both sides to claim a win. China gains access to cutting-edge AI training infrastructure; the US maintains a licensing mechanism that allows it to monitor and control deployment. This is the kind of compromise that could form the basis of a broader trade framework emerging from the Trump-Xi summit.

Sceptics note that the H200 approval may come with strings: export licenses could be revoked if US-China relations deteriorate, and the restriction to just 10 named buyers (versus an open market) preserves US leverage. Additionally, the timing, during a Trump-Xi summit, raises questions about whether future approvals will hinge on broader geopolitical concessions unrelated to chips. Longer term, the move accelerates Chinese investment in domestic chip design, which could erode NVIDIA's advantage within five years. But for the next 12 to 18 months, NVIDIA has both maintained its valuation multiple and removed a significant revenue headwind.