NVIDIA Shares Rise Following China AI Chip Supply News

NVIDIA Corporation shares are gaining momentum in pre-market trading following reports that the chipmaker plans to begin shipping its H200 AI chips to China before the Lunar New Year holiday in mid-February.

The development marks a significant policy shift under the Trump administration, which has indicated it will allow such sales with a 25% fee, reversing the Biden administration’s ban on advanced AI chip exports to China.

The stock closed at $180.99 on December 19, up $6.85 or 3.93%, and continued its upward trajectory in pre-market trading to $184.25, gaining an additional $3.26 or 1.80% as of 7:42 AM EST.

NVIDIA Plans Initial H200 AI Chip Shipments to China

According to three sources familiar with the matter, NVIDIA plans to fulfill initial orders from existing inventory, with shipments expected to total 5,000 to 10,000 chip modules, equivalent to approximately 40,000 to 80,000 H200 AI chips.

The company has also informed Chinese clients about plans to add new production capacity, with orders for that capacity opening in the second quarter of 2026. However, significant uncertainty remains as Beijing has not yet approved any H200 purchases, and the timeline could shift depending on government decisions.

The H200 chips, part of NVIDIA’s previous-generation Hopper line, remain widely used in AI applications despite being superseded by the company’s newer Blackwell chips. For Chinese technology giants such as Alibaba Group and ByteDance, which have expressed interest in purchasing H200 chips, the potential shipments would provide access to processors roughly six times more powerful than the H20, a downgraded chip NVIDIA previously designed specifically for the Chinese market.

Chinese officials have held emergency meetings to discuss the matter and are reportedly considering proposals that would require each H200 purchase to be bundled with a set ratio of domestic chips.

Join our Telegram group and never miss a breaking digital asset story.

NVDA Stock Gains Add to Strong Multi-Year Performance

NVIDIA’s stock performance reflects strong investor confidence, with the company maintaining a market capitalization of $4.40 trillion as of December 19, 2025. The stock has delivered exceptional returns across multiple timeframes, including a year-to-date gain of 34.81%, a one-year return of 38.54%, and a remarkable three-year return of 1,014.63%.

The company’s 52-week trading range spans from $86.62 to $212.19, demonstrating significant volatility alongside overall growth momentum.

Key financial metrics underscore NVIDIA’s dominant market position, with trailing twelve-month revenue of $187.14 billion and net income of $99.2 billion, yielding an impressive profit margin of 53.01%. The company’s forward P/E ratio of 23.70 and PEG ratio of 0.69 suggest strong growth prospects relative to valuation.

Analyst sentiment remains overwhelmingly positive, with 64 strong buy ratings and an average price target of $253.02, representing approximately 40% upside potential from current levels. The upcoming earnings date is scheduled for February 25, 2026, which will provide further insights into the company’s performance and guidance for AI chip demand both domestically and internationally.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.