U.S. government approval and a national security review have stalled NVIDIA's H200 AI chip sales to China.
The delay occurred nearly two months after exports were initially expected to be greenlit. This prevents the issuance of necessary licenses to Chinese customers.
Due to this uncertainty, Chinese buyers are reportedly holding off on H200 orders. They await clarity on securing required licenses.
The development creates a potential headwind for NVIDIA. CEO Jensen Huang previously stated the Chinese market could be worth $50 billion annually. The stock declined amid a broader tech sell-off.