Nvidia may finally be gaining traction in China, with fresh signs that regulatory approvals are translating into real orders — a development that could help break the stock out of its prolonged trading slump, MarketWatch reports.

The company has been authorized to sell its H200 chips in China, marking a key step forward after months of regulatory hurdles, according to sources familiar with the matter.

Chief Executive Jensen Huang also confirmed that Nvidia has received the green light and is restarting production of the H200, its second-most powerful chip after the Blackwell line, which remains subject to U.S. export restrictions.

Earlier this year, Chinese authorities had given preliminary approval for major tech firms including DeepSeek, ByteDance and Tencent to import the chips, but final authorization had been pending until now.

The approvals come as Nvidia navigates tightening restrictions from both Washington and Beijing, which have limited its ability to freely export advanced semiconductors. The drawn-out licensing process has weighed on the company’s momentum — and its stock.

Shares, which peaked at $212 in October, have since been stuck in a narrow range between roughly $180 and $200, even as earnings and guidance have improved. So far in 2026, the stock is down about 2.5%, with valuation multiples compressing despite rising analyst forecasts.

Additional China-focused developments could further support the outlook. Reuters reported that Nvidia is preparing a version of its AI chips tailored for the Chinese market, designed to power applications such as coding and real-time responses, with availability expected as soon as May.

Investors are also watching capital returns. Chief Financial Officer Colette Kress said Nvidia plans to return 50% of free cash flow to shareholders through buybacks and dividends. FactSet estimates free cash flow could reach $178 billion in 2026.

Despite strong fundamentals, Nvidia’s shares have lagged its rapid revenue growth, reflecting broader investor concerns about heavy spending across the AI sector. At GTC, Huang projected that the company could see up to $1 trillion in revenue through 2027, saying he is “certain” demand will exceed expectations.

Analysts remain bullish. Bank of America’s Vivek Arya reiterated Nvidia as his “top AI pick,” citing its leadership position and expanding full-stack capabilities, and set a $300 price target — roughly 60% above current levels.

With regulatory barriers easing and orders emerging from China, investors may now be watching to see whether Nvidia’s long-stalled stock finally has a catalyst to move higher.