"China's desire to build its own AI chips and not rely on America is another factor. An exclusive Reuters report says Nvidia has made a major breakthrough with China. It says, "ByteDance, Alibaba, and Tencent have been approved to purchase more than 400,000 H200 chips in total." These chips are sometimes described as Nvidia's second-most powerful, behind the Blackwell series. Reuters adds that the conditions attached to the sales are uncertain."
"Nvidia CEO Jensen Huang calls China a $50 billion opportunity. Nvidia's revenue forecasts do not include this figure. The company has indicated its top line will hit $65 billion this quarter, plus or minus 2%. Nvidia's market cap is based as much on anticipation as earnings results. With its $4.6 trillion market cap, it is well ahead of such traditional market cap leaders as Alphabet, Microsoft, Apple, and Amazon. Its future in China is only part of investor enthusiasm for the stock."
"Nvidia has said several times that the backlog for Blackwell chips is large. Every day brings more announcements about the massive data centers needed to power artificial intelligence (AI). Investment in these reached hundreds of billions of dollars last year. Some believe this figure will soon reach a trillion dollars a year. Virtually all these centers run on Nvidia chips."
Nvidia is selling chips to Chinese companies amid intense US-China trade negotiations and China's push to build domestic AI chips. ByteDance, Alibaba, and Tencent have been approved to purchase more than 400,000 H200 chips in total, though conditions tied to the sales remain uncertain. CEO Jensen Huang values China as a $50 billion opportunity separate from Nvidia's revenue forecasts. The company expects about $65 billion in revenue this quarter, plus or minus 2%. Nvidia's market capitalization reaches $4.6 trillion, driven largely by expectations about AI demand and large Blackwell chip backlogs.
Read at 24/7 Wall St.
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