Nvidia gains slightly on potential ByteDance and Alibaba orders 📈

ByteDance and Alibaba moved quickly to inquire about Nvidia’s H200 chips after President Trump signaled that exports to China would be allowed. This is the first real sign that top-tier Chinese platforms want back into Nvidia’s ecosystem. 

• Both companies are preparing large orders, contingent on Beijing’s approval, but they are already expressing concerns about supply availability. The H200 remains extremely limited as Nvidia prioritizes Blackwell and the upcoming Rubin line.

• The H200 is almost six times more powerful than the previously permitted H20, which instantly resets the competitive landscape in China’s AI training market. Domestic chips still lag in training workloads, which keeps Nvidia strategically essential.

• Beijing has not formally responded to the export green light yet. Recent restrictions on Nvidia chip purchases by government-backed data centers and major tech firms add another layer of uncertainty.

• Chinese regulators have asked companies including Alibaba, ByteDance and Tencent to evaluate their potential H200 demand. A decision from Beijing is expected soon.

• Despite political scrutiny, Chinese institutions ranging from top universities to defense-linked organizations have reportedly attempted to procure H200 units through grey-market channels, signaling acute demand for high-performance compute.

• Market expectations are that Chinese tech giants will purchase H200 units quietly. Leading AI models in China still depend on Nvidia hardware, and the competitive pressure against Huawei and Cambricon in training workloads remains significant.

• Nvidia’s supply chain remains constrained. Production of the H200 is still in very limited volumes, a factor that could hold back near-term revenue upside even if China reopens as a viable market.

• China’s foreign ministry offered a neutral stance, saying the country values cooperation with the United States and declining further comment.

Source: xStation5