NVIDIA Corp (NVDA) stock traded about half a percent lower in Wednesday's premarket session, as traders weighed mixed signals in mega-cap tech even as broader market sentiment improved. Nasdaq futures were up 0.50%, and S&P 500 futures gained 0.27%.

The stock drew fresh attention after a U.S. Commerce Department official confirmed that a small number of its H200 AI chips have shipped to customers in China with U.S. approval.

H200 Shipments Remain Limited

Jeffrey Kessler, undersecretary of commerce for industry and security, told Bloomberg on Tuesday that only a "trivial" number of NVIDIA H200 chips have been shipped to China. He said the shipments remain very limited under approved licenses and declined to provide details on the buyers or the exact number of chips.

The H200 became a focal point in U.S.-China technology tensions after President Donald Trump cleared the chip for export to China in December. The Commerce Department later formalized that decision through rules limiting sales to verified Chinese buyers and requiring applicants to meet national security conditions.

Kessler said each license applicant must meet strict security requirements, including safeguards to ensure the chips do not go to Chinese military uses or end users.

NVIDIA sharply reduced its China exposure over the past year, even as its overall AI-driven revenue surged. Revenue from customers based in China, including Hong Kong, fell about 53% to $4.55 billion in the first quarter from $9.66 billion a year earlier, according to NVIDIA's Form 10-Q. Despite that drop, total revenue jumped 85% year over year to a record $81.6 billion.

China Demand Faces Policy Hurdles

The U.S. has approved some Chinese firms to buy advanced chips from NVIDIA and Advanced Micro Devices, Inc (AMD), including ZTE Kangxun Telecom, Maginfra and a Kingsoft subsidiary, Reuters reported on Tuesday, citing documents and sources.

However, Chinese authorities have slowed local purchases of U.S.-designed AI chips, partly because Beijing wants to support its domestic chip industry. NVIDIA has told investors it does not expect additional near-term AI processor revenue from China, even after U.S. approval for H200 sales.

Price Action

NVDA Stock Price Activity: NVIDIA shares were down 0.37% at $211.01 during premarket trading on Wednesday, according to market data.