Nvidia share price: NVDA stocks fall big even after big H200 AI chips development. What to know?

Nvidia stocks are down on Friday after NVDA share price fell 2.4 per cent. Earlier, a report said the AI giant is evaluating an increase in H200 chip production to meet robust demand from China.


Nvidia has told Chinese clients it is evaluating adding production capacity for its powerful H200 AI chips after orders exceeded its current output level, according to two sources briefed on the matter.



The move comes after U.S. President Donald Trump said on Tuesday the U.S. government would allow Nvidia to export H200 processors, its second-fastest AI chips, to China and collect a 25 per cent fee on such sales.


Demand for the chip from Chinese companies is so strong that Nvidia is leaning toward adding new capacity, one of the sources said. They declined to be named as the discussions are private.


Major Chinese companies including Alibaba and ByteDance have already reached out to Nvidia this week about purchasing the H200 and are keen to place large orders, Reuters reported on Wednesday.


However, uncertainties remain, as the Chinese government has yet to greenlight any purchase of the H200. Chinese officials convened emergency meetings on Wednesday to discuss the matter and will decide whether to allow it to be shipped into China, said one of the two sources and a third source.


Very limited quantities of H200 chips are currently in production, Reuters reported on Wednesday, as the U.S. AI chip leader is focused on producing its most advanced Blackwell and upcoming Rubin lines.


The S&P 500 and the Nasdaq slipped on Friday as Broadcom's latest results added to concerns about an AI-fueled bubble, dampening optimism stoked by the Federal Reserve's less-hawkish-than-expected signals on 2026 rate cuts.


Broadcom slid 8.4 per cent after the chipmaker warned of slimmer future margins on its AI system sales, despite projecting strong quarterly revenue. This sharpened worries about the profitability of surging AI investments.


Other chip stocks, such as Advanced Micro Devices lost 1 per cent and a broader chips index fell 1.5 per cent a day after Oracle unveiled a weak forecast. Shares of the cloud company fell 2.3 per cent after logging their biggest daily drop since January in the previous session.


Other stocks that have rallied this year on the back of AI optimism such as Sandisk tumbled 13.6 per cent, while infrastructure companies such as CoreWeave and Oklo slid 11 per cent each.


The S&P 500 posted 31 new 52-week highs and three new lows, while the Nasdaq Composite recorded 106 new highs and 69 new lows.