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Nvidia Corporation (NVDA) shares are gaining momentum in premarket trading on January 23, 2026, following reports that Chinese regulators have granted in-principle approval for the country’s largest tech companies to prepare orders for Nvidia’s H200 AI chips. The stock is trading at $187.55 in premarket, up $2.82 or 1.53% from the previous close of $184.84.

This development suggests Beijing is moving closer to formally approving imports of advanced AI chips, which could unlock massive demand from Chinese tech giants including Alibaba, Tencent, and ByteDance.
 

H200 Demand Returns as China Loosens the Gate

Chinese officials have recently granted in-principle approval for Alibaba Group Holding Ltd., Tencent Holdings Ltd., and ByteDance Ltd. to move to the next stage of preparations for H200 chip purchases, according to Bloomberg News.

The companies are now cleared to discuss specifics such as the quantities they would require, marking a significant shift in China’s stance on importing advanced AI chips. Beijing will encourage companies to buy a certain amount of domestic chips as a condition for approval, though no exact quota has been set yet.

China intends to approve some imports of H200 graphics processing units as soon as this quarter, though the chips would be barred from sensitive government agencies and critical infrastructure. Alibaba and ByteDance had earlier indicated privately to Nvidia that they were interested in ordering over 200,000 units each of the H200 chips.

This massive potential demand comes after weeks of uncertainty, during which Chinese customs officials had blocked shipments and the government deliberated on whether to allow the chips into the country.
 

Wall Street Watches China Progress After Weeks of Uncertainty

Nvidia shares closed at $184.84 on January 22, 2026, up $1.66 or 0.91%, and are extending gains in premarket trading to $187.55. The company maintains a market capitalization of approximately $4.5 trillion with a trailing P/E ratio of 45.64 and forward P/E of 24.15.

The stock has delivered impressive returns with a 1-year gain of 25.72% and a remarkable 5-year return of 1,251.76%, significantly outperforming the S&P 500’s 79.97% gain over the same period.

The H200 chip situation has been developing over several weeks, with Chinese customs authorities initially blocking shipments and halting imports over security concerns. Last month, U.S. President Donald Trump approved the sale of some advanced AI chips, including the H200 GPUs, to China in exchange for a 25% tariff.

Nvidia CEO Jensen Huang recently noted that demand for H200 chips was strong from Chinese companies and indicated that license applications had been submitted in the U.S., with final approval details being finalized. Analysts remain bullish on Nvidia, with price targets ranging from $140 to $352, and an average target of $253.19.

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