NVDA Stock On Track To Snap 3-Day Losing Streak After H200 AI Chips Reportedly Reach ByteDance, Tencent in China

• According to a Financial Times report, ByteDance and Tencent each received about 10,000 H200 processors in recent weeks.
• The report also said Nvidia has roughly 500,000 H200 chips in inventory, largely intended for Chinese customers. 
• It added that other tech companies in China may also receive approval to import Nvidia chips.

Nvidia (NVDA) shares were on track to snap a three-day losing streak in pre-market trade on Wednesday after a report said ByteDance and Tencent had each received about 10,000 H200 processors amid easing restrictions on Nvidia chips in China.

According to a Financial Times report, other tech companies in China may also receive approval to import Nvidia chips as Beijing tries to aid its leading AI companies in the race to catch up with U.S. rivals. 

NVDA stock edged 0.5% higher in pre-market trade amid a broader recovery in equities. The shares have fallen more than 3% over the last three sessions. On Stocktwits, it was among the top trending tickers at the time of writing. Retail sentiment around the AI bellwether remained in ‘bearish’ territory over the past day.

ByteDance, Tencent Receive Nvidia H200 Chips

The report said the U.S. has cleared ByteDance and Tencent to purchase up to 100,000 H200 chips each. However, Beijing wants them to keep most of those chips outside mainland China to continue supporting domestic chipmakers, according to one person familiar with the matter. It added that Chinese regulators have also allowed companies to ship the processors to Hong Kong.

The report also said Nvidia has roughly 500,000 H200 chips in inventory, largely intended for Chinese customers. Sales had been delayed because of Beijing's restrictions, according to people familiar with the situation.

The report added that some Nvidia partners, including Lenovo, told Chinese customers last week they could resume placing orders for products containing H200 chips. Those partners combine Nvidia's GPUs with CPUs, networking equipment and other components to build AI servers.

China Sales Could Add Billions To Nvidia Revenue

In a prior exclusive interview with Stocktwits, former Goldman Sachs partner Michael Parekh estimated that Nvidia could potentially add another $10 billion in revenue if its China sales normalized.

For now, the situation remains complicated. Chinese AI companies appear to be gaining greater access to Nvidia's H200 processors, but Beijing is still trying to balance their need for advanced computing power with its broader goal of reducing the country's reliance on foreign chipmakers.

NVDA stock has gained more than 15% this year and over 20% in the last 12 months. 

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