China's Nvidia H200 Bottleneck Deepens: 600,000 Chips Reportedly Await Approval In Hong Kong as Servers Fetch Nearly $1 Million Each

About 600,000 advanced H200 processors from Nvidia Corp. (NASDAQ:NVDA) are reportedly awaiting shipment in Hong Kong amid Beijing’s import restrictions.

Nvidia chips remain stored in Hong Kong while mainland authorities withhold approval for large-scale deliveries, Reuters reported on Thursday, citing people with knowledge of the matter. China has permitted limited H200 shipments in recent months. Several major internet companies reportedly received about 10,000 chips each, while smaller volumes reached customers through intermediaries and indirect channels.

Beijing has not authorized broad imports into the mainland, despite demand from Chinese technology companies seeking more computing power for expanding AI operations.

By late October, an eight-card H200 server reportedly sold for more than 6 million yuan, or approximately $900,000. That price was roughly triple its level one year earlier. Servers containing Nvidia’s newer Blackwell chips reportedly sold for more than 20 million yuan or $2.99 million, although those products remain restricted under U.S. export controls.

Reuters reported last month that ByteDance, Alibaba Group Holding Ltd. (NYSE:BABA) and Tencent Holdings (OTC:TCEHY) had placed orders for more than 3 million Nvidia RTX Pro 5500 graphics cards, an export-compliant but less powerful product, with a combined value exceeding $35 billion.

Nvidia did not immediately respond to Benzinga’s request for comments.

Nvidia’s H200 Becomes Trade Flashpoint

Nvidia’s H200 chip has become a focal point of broader U.S.-China trade and technology tensions. Washington initially banned H200 exports to China but later allowed sales to approved Chinese customers following trade negotiations between President Donald Trump and Chinese President Xi Jinping. Beijing has imposed its own restrictions on imports, citing concerns over dependence on U.S. technology.

Earlier this month, Nvidia has reportedly asked global data center partners to ensure at least 51% of their cloud-service revenue comes from non-Chinese customers, potentially restricting Chinese access to advanced AI computing infrastructure.

U.S. restrictions on high-bandwidth memory (HBM) and semiconductor manufacturing equipment are limiting China’s ability to produce advanced AI chips. However, Futurum Equities strategist Shay Boloor told Benzinga that the curbs could also accelerate Beijing’s push to develop domestic alternatives by giving Chinese suppliers a larger captive market and stronger incentives to replace foreign technology.

Price Action: Year-to-date, Nvidia Stock climbed 7.31%, as per Benzinga Pro. The stock dropped 1.58% to $196.97 pre-market on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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