A Potential Shift in China’s Stance Offers Relief for Nvidia Investors

A subtle but significant signal from Beijing is providing a tailwind for Nvidia, the leading designer of artificial intelligence (AI) chips. According to a recent Bloomberg report, Chinese authorities have given major domestic technology firms, including Alibaba, Tencent, and ByteDance, preliminary approval to begin preparing orders for Nvidia’s H200 AI processors. This development suggests a partial easing of one of the most significant geopolitical overhangs on the company’s stock.

The move comes at a critical juncture for Nvidia, which has been operating within a tense framework of strict U.S. export controls on advanced semiconductors to China, coupled with persistent, high demand from Chinese cloud companies for AI hardware. Read more...