Nvidia (NASDAQ: NVDA) shares fell 9.26% to close at $181.60 on Thursday amid a broad semiconductor selloff. Separately, Reuters reported that approximately 600,000 Nvidia H200 AI chips were awaiting Chinese import approval in Hong Kong.
The selloff followed Democrats’ sweeping victory in Tuesday’s U.S. midterm elections, which raised concerns about increased scrutiny of data-center construction and potential delays to AI infrastructure projects.
Local election results across 10 states also showed opposition to data-center development in 40 of 41 ballot measures, according to Ballotpedia, although some votes were advisory rather than legally binding.
UBS analysts estimated that possible construction pauses could put approximately 30% of expected U.S. data-center capacity additions in 2028 at risk.
Concerns added pressure on AI-related stocks as investors questioned the potential returns from large infrastructure investments. The Nasdaq Composite also fell sharply Thursday, while several major semiconductor and technology companies recorded double-digit intraday declines.
The Philadelphia Semiconductor Index plunged 12.25% on Thursday, recording its steepest single-day decline since March 2020.
For Nvidia, Thursday’s selloff extended a 3.2% decline from the previous session. At $181.60, the stock was about 15% below its October 29 closing price of $213.66.
China Holds Up Large H200 Shipments
The Reuters report, citing two people familiar with the matter, said Beijing had not authorized large-scale H200 imports despite demand from Chinese technology companies. The restrictions reflect Beijing’s concerns about growing dependence on U.S. technology.
Chinese authorities have permitted limited deliveries in recent months, with several major internet companies each obtaining approximately 10,000 chips. Smaller quantities of chips have also reached mainland China through intermediaries and indirect routes, but bulk shipments remain restricted.
Chinese tech companies continue to seek H200 processors to train AI models, despite Nvidia introducing newer chips. Limited authorized supplies have pushed up unofficial-market prices in China. By late October, an eight-chip H200 server was being offered for more than 6 million yuan, or approximately $900,000, roughly triple its year-earlier price.
Nvidia’s Earlier Disclosures Show Limited H200 Sales to China
Nvidia had previously reported financial consequences from restrictions on its H200 business.
In its fiscal second-quarter regulatory filing, the company disclosed a $400 million charge during the first half of fiscal 2027 for excess H200 inventory and purchase obligations after demand for those products diminished.
The filing stated that U.S. authorities began granting licenses in February 2026 for limited H200 shipments to specific Chinese customers. However, Chinese government restrictions prevented Nvidia from selling all the products covered by those licenses.
Nvidia said licensed H200 shipments accounted for less than 1% of its Data Center revenue in the fiscal second quarter. The licenses also require the processors to undergo inspection in the United States before shipment to customers in China, subjecting the chips to a 25% tariff upon importation into the United States. Nvidia said it could not pass that cost on to customers.
The company had already excluded Data Center compute revenue from China when it issued its $108 billion fiscal third-quarter revenue forecast in August.
It remains unclear who owns the H200 chips in Hong Kong or whether their delayed shipment will affect Nvidia’s revenue.
