NVDA Stock Rises After Reports Reveal ByteDance Plans To Buy $7B Worth Nvidia Chips In 2025: Retail Turns Bullish

ByteDance reportedly plans to buy Nvidia’s top-tier H100 and Blackwell chips and the H20 AI chip.
Chipmaker NVIDIA's Valuation Passes 1 Trillion In Market Cap
SANTA CLARA, CALIFORNIA - MAY 30: An exterior view of the NVIDIA headquarters on May 30, 2023 in Santa Clara, California. (Photo by Justin Sullivan/Getty Images)
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Rounak Jain·Stocktwits
Updated Jul 02, 2025   |   8:31 PM EDT
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Shares of AI bellwether Nvidia Corp. (NVDA) surged by nearly 2% in afternoon trade on Monday after media reports suggested that TikTok-owner ByteDance has plans to shore up billions of dollars worth of chips from the company.

According to a report by The Information, ByteDance has revealed to its suppliers that it plans to buy AI chips from the company worth $7 billion.

These chips will reportedly be used by ByteDance despite a U.S. ban on exports of AI chips to China. The company plans to use these chips in data centers outside China, including its new facilities in Malaysia.

ByteDance’s $7 billion purchase will include a mix of Nvidia’s top-tier H100 and Blackwell chips, as well as the H20 chips, which comply with U.S. restrictions.

One reason ByteDance may want to shore up Nvidia AI chips is that it is preparing to launch a rival to OpenAI’s ChatGPT in China.

Dubbed Doubao, the chatbot already has over 50 million users. It lets users generate text, images, videos, and even audio. Users can also perform data analysis and use AI-powered internet searches.

Following the news about ByteDance’s planned purchase of Nvidia chips, retail sentiment on Stocktwits flipped from ‘bearish’ to ‘bullish’ (67/100) in Monday trade.

Meanwhile, one user thinks that the stock will witness a break-out this time after trading in a small band over the past few sessions.

Nvidia’s presence at the upcoming Consumer Electronics Show 2025 is also a catalyst for the stock, said another user.

Nvidia stock has experienced rangebound movement over the past month, gaining just 0.5%. However, year-to-date, Nvidia shares are up 189%, while the Nasdaq 100 index has gained just under 29%.

Also See: Gorilla Technology Stock Surges As Company Injects $6 Million Through Fresh Capital: Retail Sentiment Turns Bullish

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