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 technology companies to restart preparations for purchasing H200 AI chips. Chinese authorities have instructed Alibaba Group (BABA) and other large platforms to prepare orders for Nvidia H200 processors after recent customs actions temporarily disrupted shipments.
The guidance signals a narrow path for Beijing to follow. On the one hand, officials are tightening oversight of advanced chip imports. On the other hand, domestic cloud providers and AI developers still rely on H200-class hardware for large-scale training workloads. The move reportedly follows a fitful approval process, with companies also being encouraged to prioritize domestic chips while sourcing Nvidia.
The timing overlaps with Nvidia CEO Jensen Huang’s planned trip to China in late January as Nvidia looks to rebuild momentum in a market shrouded in policy uncertainty. For Alibaba, securing H200 supplies will support cloud and AI expansion plans, although any domestic sourcing conditions could complicate capex decisions and the pace of spending.
