Nvidia shares rose 1.5% Friday after Bloomberg reported Chinese authorities have granted in-principle approval for major tech firms to prepare orders for its H200 AI chips. Companies like Alibaba, Tencent, and ByteDance can now advance procurement plans, a shift from earlier reports of import blocks.

The H200 is crucial for high-performance AI systems, and this clearance suggests Beijing may be nearing formal approval for key imports. The move comes amid ongoing U.S.-China tech tensions, where Washington has restricted advanced chip exports to China. Chinese regulators reportedly want firms to purchase some domestic chips as a condition.

Investors will watch for final approval and order volumes, which could boost Nvidia's data center revenue. The development also signals potential relief for Chinese tech giants facing AI compute shortages. Market attention will turn to Nvidia's next earnings report for guidance on China demand and broader AI chip supply dynamics.