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.

After successfully lobbying the Trump administration to approve the sales of its H200 chips to China, Nvidia is now thinking of adding capacity to produce more of the chips.

The U.S. Just Authorized Nvidia Chip Sales to China. Here's What Investors Need to Know. The U.S. now says it will ease restrictions, allowing the AI leader to return to this high-growth market. Nvidia's Jensen Huang says the China AI opportunity is worth billions of dollars.

Nvidia CEO Jensen Huang appeared to have scored big on Monday when the White House approved sales of his company’s H200 chips to China. But China may prefer Chinese-made chips—or smuggled ones.

Chinese regulators are discussing ways to allow only limited access to the chips as it encourages domestic production, according to a report.

MetaX Integrated Circuits Shanghai Co. soared in its first day of trading on Wednesday, the latest outsized debut by a Chinese chipmaker after similar gains by Moore Threads Technology Co. earlier this month.

The allegations reveal the failure of physical export controls and open a new front in the battle to end black-market chip sales.

Trump administration's decision to allow NVIDIA chip sales to China sparks concern among lawmakers who worry about giving advanced technology to a key adversary.