Nvidia's H200 Chip Sales Face Challenges, Strong Demand but Profitability Limited
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Strong Market Demand: As of the end of last year, Chinese companies had ordered over 2 million H200 chips, while Nvidia's stock was only 700,000, indicating robust demand despite supply challenges.
- Government Policy Impact: The U.S. government permits the sale of H200 chips with a 25% revenue cut, which could affect Nvidia's profit margins, although CEO Jensen Huang states that demand is 'quite high'.
- Profitability Risks: Despite Nvidia generating nearly $100 billion in profit over the past 12 months, significant revenue sharing with the U.S. government could impact its future profitability and stock performance.
- Increased Market Competition: The Chinese government is promoting domestic chip manufacturing, which may reduce reliance on Nvidia's products and increase market uncertainty, especially amid tense U.S.-China relations.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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