Nvidia (NVDA) Stock: Full Upfront Payment Required for H200 Chips in China

TLDR

• Nvidia stock (NVDA) requires full upfront payment for H200 AI chip orders in China with no refunds
• Chinese buyers ordered 2 million+ H200 chips at $27,000 each, tripling Nvidia’s 700,000 chip inventory
• China regulators pause H200 approvals while determining domestic chip purchase requirements
• Nvidia stock protection strategy follows $5.5 billion inventory write-down from previous export bans
• H200 chip delivers 6x better performance than banned H20, driving strong Chinese demand

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Nvidia stock is making headlines as the chipmaker implements strict payment requirements for H200 AI chip sales in China. The company now demands full upfront payment before processing orders.

NVIDIA Corporation, NVDA

The new Nvidia payment policy eliminates all flexibility. Customers cannot cancel orders, request refunds, or modify configurations after placement. Some buyers may substitute commercial insurance or asset collateral for cash payment.

This represents a major change for Nvidia stock operations in China. The company previously accepted partial deposits from Chinese customers rather than requiring full payment upfront.

China Regulatory Delays Impact Nvidia Stock

Beijing has not approved H200 chip shipments to China. This regulatory uncertainty drives Nvidia’s stricter sales approach.

Chinese authorities asked local tech companies to pause H200 orders temporarily. Regulators are determining mandatory domestic chip purchases alongside each H200 order.

The Trump administration reversed Biden-era export bans last month. H200 sales to China now require a 25% fee to the U.S. government.

Chinese demand for Nvidia stock products remains strong. Tech companies ordered over 2 million H200 chips worth approximately $54 billion total.

Nvidia’s current H200 inventory totals just 700,000 chips. Orders exceed available supply by nearly three times.

H200 Performance Drives Nvidia Stock Demand

The H200 delivers six times better performance than the banned H20 chip. Chinese AI companies view this as a critical upgrade.

Domestic Chinese chips like Huawei’s Ascend 910C cannot match H200 performance. The gap is especially large for training advanced AI models.

Nvidia CEO Jensen Huang confirmed H200 demand stays “quite high.” The company ramped up supply chain production to meet orders.

First H200 shipments should arrive before Lunar New Year in mid-February. Nvidia plans to fulfill initial orders from existing inventory.

The company contacted Taiwan Semiconductor Manufacturing about expanded H200 production. Additional manufacturing begins in Q2 2026.

Nvidia stock faces pressure from past losses. The company wrote down $5.5 billion in inventory last year after abrupt H20 export bans.

The new payment structure transfers financial risk to Chinese buyers. Customers commit capital without guaranteed Beijing approval or deployment certainty.

China may approve select H200 imports this quarter. Officials plan to allow commercial purchases while blocking military, government agencies, and state enterprises.

Chinese internet giants including ByteDance consider the H200 essential. The chip ranks as Nvidia’s second-most powerful offering currently available.

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