U.S. Confirms Nvidia Has Started Shipping AI Chips to China
The U.S. government is signaling that a major tech company's stock could soar even higher as chip exports to China restart. Here is a closer look at the comments and what they might mean for a U.S. tech giant.
Government Officials Confirm Nvidia is Exporting Chips to China
Head of the Bureau of Industry and Security (BIS) Jeffrey Kessler said last week that tech company Nvidia has sent "very few" of its H200 artificial intelligence (AI) chips to China and Hong Kong. While this statement may not seem significant on the outset, it is an indication that shipments of the chip to China have restarted. This means that Nvidia's sales could climb even higher.
Kessler made the remarks while testifying at a congressional hearing. Appearing before the House Foreign Affairs Committee, Kessler was grilled about the agency's budget request for the fiscal year 2027. Congressional Democrats have been expressing more concern about how the Trump administration is controlling the nation's exports, particularly in the field of AI.
When asked about the export of Nvidia chips, Kessler told the committee that “The bottom line is very few shipments against licenses for H200s and equivalents have taken place. It’s a very small quantity of chips."
Going back to last year, Nvidia has not included any potential revenue from Chinese AI chip sales and forecasts. Nvidia CEO Jensen Huang told the media in May that he was telling investors to "expect nothing" from potential sales to China.
The lack of exports of Nvidia chips to China is not something that the company is driving. The multinational tech company headquartered in Santa Clara, California, has long wanted to ship its AI chips to China. As one of the largest global markets for AI development, Nvidia is likely sitting on a potential gold mine if these trade restrictions were eased.
However, a trade and technology war between the U.S. and China has put a lid on the business relationship between Nvidia and the Asian country. Most of Nvidia's products are currently under U.S. export restrictions to China, meaning that the company is not allowed to do business with this country.
Trump Approves Sales of Nvidia Chips to China
U.S. President Donald Trump confirmed in December that the government would approve Nvidia's sale of the H200 AI chip to China in exchange for a 25% cut. This permission spurred conversations that the exception would open a major revenue stream for Nvidia. The licenses for the chips were then issued earlier in 2026. One of the major concerns with exporting the chip is that Chinese officials could use it for military purposes.
The H200 is not one of the newest Nvidia chips. The older chip is part of the Hopper generation, meaning that it is not as powerful and capable as the newer models. In contrast, most American companies are leaning on the faster Blackwell chips.
During his testimony, Kessler said that government officials are assessing the companies that want to use the H200 chips individually to determine if they qualify. Kessler confirmed that applicants are required to meet national security requirements, in addition to submitting to inspections to ensure that the chips are compliant. He went on to say that the government has denied some of the license applications.
There were often more questions raised than answered during Kessler's testimony. What is also still unclear is whether China will approve the import of a large volume of the chips. The country also produces its own chips; however, they are considered to be inferior to the Nvidia products.
Kessler was on Capitol Hill to request an additional $215 million in funding for BIS. The funding would be earmarked to hire new law enforcement officers.
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