Nvidia (NVDA) has paused production of its H200 chips for the Chinese market amid regulatory challenges, which may have an adverse effect on its stock. Per a report from the Financial Times, Nvidia has asked Taiwan Semiconductor Manufacturing Company to reallocate manufacturing capacity from making H200 chips to making next-generation Vera Rubin hardware. NVDA stock is up a fraction of a percent at press time. However, the decision to halt AI chip production could prove bearish for the stock.
In its latest call, Nvidia executives said they had not sold any H200 chips to Chinese customers yet. Although President Trump indicated Nvidia would be able to sell its second-most-powerful chip to China in January, the move suggests that the company expects additional regulatory barriers in Beijing and Washington to impede sales. “While small amounts of H200 products for China-based customers were approved by the US government, we have yet to generate any revenue, and we do not know whether any imports will be allowed into China,” Nvidia CFO Colette Kress said on the earnings call.
In other Nvidia (NVDA) news, IREN Limited (NASDAQ: IREN) announced that the company has ordered 50,000 B300 Nvidia GPUs to power up its hybrid business. The move could prove beneficial for NVDA stock in the long run, helping reverse the effect of paused H200 chip production. The cloud infrastructure company that runs data centers with 100% renewable energy will receive the delivery during the second half of 2026. The firm already operates with 100,000 Nvidia B300 GPUs and will total it to 150,000 by the year-end.
Also Read: Cardano: ADA Records $990 Million Trading Volume For 6 Consecutive Days
The company intends to deploy the 50,000 GPUs in phases in its air-cooled data centers in Childress, Texas, and Mackenzie, British Columbia. IREN revealed that the new addition could help the firm achieve an annualized run-rate revenue of over $3.7 billion. They aim to reach the target by the end of 2026. NVDA The stock could gain in the coming months as the orders would boost its revenues and balance sheet in the next quarter’s earnings call.
At press time, Nvidia (NVDA) is trading near the top of its 52-week range and above its 200-day simple moving average. It is hoping to breach the $200 price level in 2026 for the first time since November 2025. One of the top AI stocks on the US market, NVDA, is one of the must-watch stocks among the magnificent-7 grouping. It’s unclear how harshly the H200 AI chip production pause will affect a potential NVDA rally.
