China’s AI Push Reportedly Fuels $16 Billion in Nvidia Chip Orders — But Stock Stays Flat Amid Bearish Retail Sentiment
The H20 is the most advanced AI chip Nvidia can legally export to China under U.S. trade restrictions.
Nvidia (NVDA) shares moved slightly higher Wednesday afternoon following a report from The Information that Chinese companies – including ByteDance, Alibaba Group (BABA), and Tencent Holdings – have placed at least $16 billion in orders for Nvidia’s H20 server chips in the first quarter of the year.
The H20 is the most advanced AI chip Nvidia that can be legally exported to China under U.S. trade restrictions.
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The Information’s data supports an earlier report by Reuters that Chinese technology firms are aggressively securing supplies of Nvidia’s downgraded AI chips to power their expanding artificial intelligence initiatives.
Last month, Reuters reported that Alibaba, ByteDance, and Tencent were ramping up purchases of H20 chips to support generative AI models such as DeepSeek-R1.
However, the supply of these chips appears to be tightening.
In another report last week, Reuters reported that H3C, one of China’s largest server manufacturers and a key original equipment manufacturer (OEM) for Nvidia’s AI chips, had warned clients of an impending shortage of the H20 chip.
In a client advisory note, H3C said its stock of H20 chips was nearly depleted and that fresh deliveries were unlikely before mid-April. It attributed the supply crunch to disruptions in raw materials and broader global trade uncertainty.
Neither Nvidia nor the Chinese firms named in The Information report have commented on the reported orders.
On Stocktwits, retail sentiment around Nvidia’s stock dipped lower within ‘bearish’ territory.
One user suggested that if $16 billion in orders couldn’t lift the stock, the logical move was to buy puts.
Another user expressed frustration with Nvidia’s slow price increase.
https://stocktwits.com/vacationman49/message/610102931
Nvidia’s stock is down 18% in 2025 but remains up nearly 25% over the past 12 months.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
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