U.S. Commerce Department to allow exports of Nvidia H200 chips to China

Core Viewpoint - The approval of Nvidia's H200 chips for sale to China may not lead to significant market changes due to potential roadblocks from the Chinese government despite the recent uptick in stock price [1][2]. Group 1: Approval and Market Reaction - The U.S. Commerce Department has approved the sale of Nvidia's H200 chips to China, which has led to a slight increase in Nvidia's stock price by approximately 2.5% [1][4]. - The market reaction may be premature as there are concerns regarding the security of these chips, similar to previous issues with the H20 chips that were blocked by China [2][3]. Group 2: Security Concerns and Market Dynamics - China has expressed security concerns about the H20 chips, which are considered less advanced than the newly approved H200 chips, leading to skepticism about their security [2][3]. - Some Chinese media outlets have suggested that the approval of H200 chips may be a strategy for Nvidia to offload excess inventory, describing it as a "sugarcoated bullet" [3]. - Despite the approval from the U.S., the Chinese government retains the authority to block the sale of H200 chips, indicating that market access remains uncertain [4].