US to Cap Chinese Purchases of Nvidia’s H200 Chips at 75,000 Units
Nvidia shares dropped 0.6% after hours following reports that US officials plan to cap Chinese purchases of Nvidia’s H200 chips at 75,000 units per company, counting AMD’s MI325 shipments toward the same limit. The proposed per-firm ceiling is less than half of the volumes sought by Alibaba and ByteDance, though total exports to China could still reach up to one million units.
1. Proposed Export Caps
US officials are considering a per-customer limit of 75,000 Nvidia H200 accelerator chips, with shipments of AMD’s MI325 accelerators counting toward the total. The policy could still allow aggregate exports of up to one million units to Chinese companies under an overall ceiling set earlier in the review process.
2. Revenue and Buyer Reactions
Key customers Alibaba and ByteDance had individually requested shipments exceeding the proposed 75,000 limit, suggesting that enforced per-firm caps could significantly reduce expected revenue. Nvidia may face pressure to reallocate supply or negotiate revised terms with large Chinese clients.
3. Market and Competitive Implications
Nvidia’s shares slid 0.6% after hours on the export cap news, reflecting investor concern over future China sales. AMD’s similar chip segment will also be constrained, prompting both firms to explore alternative markets, adjust production forecasts and consider strategic pricing to offset potential losses.