NVDA Stock Heads For Fourth Week In Red: Report Says Nvidia Has Begun Vera Chip Pitches To Chinese Customers

At least one major Chinese cloud company plans to place an order for more than 300 servers, each containing two Vera CPUs, Reuters reported.

• Nvidia is reportedly pushing alternative chips to Chinese customers as sales of H200s remain stalled.
• NVDA stock has underperformed peers in the chip sector in recent months, leading to frustration among investors.
• Stocktwits sentiment for NVDA dropped to ‘extremely bearish’ from ‘bearish.’

Nvidia shares rose 0.3% in early premarket trading on Friday, but the stock appears to be heading for a fourth straight week of losses with retail sentiment deteriorating further.

However, a positive signal could be on the horizon. Reuters reported, citing its sources, that Nvidia is pitching its "Vera" AI accelerators to Chinese customers and inviting orders.

The company reportedly told customers in the region that Vera processors will be available from August, and at least one major Chinese cloud company plans to place an order for more than 300 servers, each containing two Vera CPUs.

The outreach reflects Nvidia’s swift pivot to the new offering as it seeks to revive its weakening position in China, following months of stalled shipments of its second-most advanced AI chip, the H200.

NVDA Looks To Revive China Business

Huang recently said Nvidia’s revenue from China has effectively dropped to zero, reiterating the detail from the company’s latest results. Just two years ago, Nvidia was a dominant chip supplier in the region before the U.S. tightened restrictions on advanced technology exports as a geopolitical lever.

At its peak, Nvidia clocked $25 billion in sales from the Chinese market in 2024, about 32% of the company’s total revenue that year.

Huang was also part of U.S. President Donald Trump’s delegation to China last month, though the visit did not result in a definitive approval for H200 sales or a formal agreement between Washington and Beijing.

Reuters reported that Chinese clients have shown interest in the Vera chip, Nvidia's first standalone central processing unit (CPU) ⁠built for agentic AI.

The Vera line is the successor to Nvidia’s Blackwell processors, and is now in full production, the company said last month. A single Vera processor will cost "well north" of $20,000 before bulk discounts, and a fully configured rack of 256 chips would run to around $10 million, depending on memory chip configuration, Reuters reported citing estimates from SemiAnalysis.

Nvidia expects $20 ​billion in revenue from Vera chip sales ⁠by the end of this fiscal year to end-January.

Retail View On NVDA

On Stocktwits, the retail sentiment for NVDA dropped to ‘extremely bearish’ from ‘bearish’ the previous day, with traders sounding frustration with the stock’s underperformance relative to peers.

“$NVDA Someone explain why this stock is so dead. Everything else like 10% why is this still stuck under 210,” a trader said.

Nvidia stock is up 10% year to date. In comparison, the iShares Semiconductor ETF (SOXX) has gained 95% and the Invesco QQQ Trust Series 1 (QQQ) is up 17%.

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