A senior US Commerce Department official has stated that shipments of Nvidia's H200 artificial intelligence chips to mainland China and Hong Kong remain negligible, despite recent regulatory approvals allowing limited exports.
Jeffrey Kessler, a top administration official, told lawmakers on Tuesday that only a "very small quantity" of the advanced processors has reached Chinese buyers so far, marking the first confirmed deliveries under the new licensing framework.
The comments serve to temper expectations among investors who had anticipated a rapid surge in Nvidia's revenue from the Chinese market following the easing of restrictions.
While the approvals signal a potential thaw in the technology trade standoff, the administration's characterization of the volumes as "trivial" suggests that logistical hurdles, compliance checks, or cautious buying behavior are constraining near-term flows.
This distinction is critical for traders assessing the magnitude of the China exposure in Nvidia's upcoming earnings reports.
The development comes as Chinese authorities have reportedly authorized domestic AI companies to purchase the H200 units, aiming to bolster their infrastructure capabilities amid ongoing geopolitical tensions.