Jensen Huang delivered a significant surprise when he confirmed that Nvidia had received orders from China for its H200 artificial intelligence chip, ending an export hiatus that had hung over the company's growth story for months.
Reuters subsequently confirmed that Nvidia had secured Chinese regulatory approval and added a further detail that will unsettle competitors: the company is also designing a variant of Groq's AI chip specifically for the Chinese market, suggesting a broader strategic re-engagement with the world's second-largest economy rather than a one-off concession.
The H200, Nvidia's current flagship AI training processor, had been restricted from China under US export controls, a policy shift that forced Chinese technology companies to scramble for domestic alternatives and removed what had once been one of Nvidia's most lucrative revenue streams.
Wedbush, which remains bullish on the stock, was careful not to overstate the financial impact, noting that Nvidia's growth trajectory has been strong enough to partially absorb the China gap.
But the broker's central argument is compelling: even at the margin, reopening China represents incremental demand for a company already meeting or exceeding expectations, and that combination is historically what drives sustained multiple expansion.
There is also a secondary consequence that memory investors will be watching closely.
H200 systems require high-bandwidth registered dual inline memory modules (RDIMMs) to support the Intel and AMD processors that sit in front of the graphics units in data centre configurations, meaning Chinese demand for H200s translates directly into further pressure on an already-tight memory supply chain.
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With Nvidia trading below 20 times forecast 2028 earnings, a valuation that looks modest against its growth rate, Wedbush sees meaningful upside ahead.
The risk, as always, is that geopolitical winds shift again before the order books fill.
