China--Nvidia Ties Appear Back On
Renato Neves, CFA
Fri, January 23, 2026 at 1:08 PM EST
1 min read
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This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) shares rose 1.54% to $187.69, as investors weighed signs that China may allow major tech firms to restart preparations for H200 AI chip purchases. Chinese authorities have instructed Alibaba Group (BABA) and other large platforms to prepare orders for Nvidia's H200 processors, following recent customs actions that temporarily disrupted shipments.
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The guidance points to Beijing walking a narrow line. On one hand, officials are tightening oversight of advanced chip imports. On the other, domestic cloud providers and AI developers still depend on H200-class hardware for large-scale training workloads. The move follows reports of an on-and-off approval process, with companies also being encouraged to prioritize domestically produced chips alongside any Nvidia purchases.
The timing overlaps with Nvidia CEO Jensen Huang's planned China trip in late January, as Nvidia looks to re-establish momentum in a market clouded by policy uncertainty. For Alibaba, access to H200 supply would support cloud and AI expansion plans, although any domestic procurement condition could complicate capex decisions and spending cadence.
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