Nvidia Stock On Track For Fresh Peak After Reportedly Ordering 300K H20 AI Chips From TSMC — Retail Optimism Grows

As Nvidia’s China headwinds begin to abate, the Jensen Huang-led company could be seeing a surge in demand for its products in this key market.

A Reuters report, citing two sources, said Apple had placed orders for 300,000 H20 chipsets with its contract manufacturer and foundry, Taiwan Semiconductor Manufacturing Co., Ltd. (TSM), last week.

One of the sources told the media outlet that the orders came in response to signs of rising demand for Nvidia’s chips in China.

Nvidia, a major supplier of high-performance artificial intelligence (AI) accelerators to China, took a hit from the previous Biden administration’s order to restrict shipments of these chips to the Asian country. The political move was in response to concerns that the technology could help China enhance its military capabilities.

The U.S. chipmaker then developed workaround chips to sidestep the China export curbs, only to be dealt a fresh blow when the incoming Trump administration announced further restrictions, banning Nvidia’s China-compliant H20 chips.

Nvidia was considering developing another China-specific chip as it took a $4.5 billion first-quarter hit due to the new restrictions and flagged another $8 billion impact on its second-quarter results.

Huang and Washington have since ironed out the wrinkles. The CEO said in a blog post earlier this month that Nvidia has filed to resume H20 chip sales in China, following assurances from Washington to lift the ban.

The Commerce Department has yet to officially give its nod.

Nvidia has been the frontrunner in the AI race as its chips power most of the AI applications, systems, and processes worldwide. Riding on the frenzy, Nvidia stock has added nearly 32% year-to-date, and it closed Monday’s session at $176.75, just shy of its record intraday high of $177.

In overnight trading, the stock was up 1.22% at $178.91 as of the last check. Nvidia was among the top five trending tickers on Stocktwits early Tuesday, and also among the top 10 active tickers.

On Stocktwits, retail sentiment toward the stock stayed ‘bullish’ (72/100), while 24-hour message volume was at ‘high’ levels.

Nvidia’s new chip orders would augment its existing inventory of 600,000 and 700,000 H20 chips, the report said. The company is on track to outdo its 2024 sales of around one million H20 chips.

Commerce Department Howard Lutnick said on Sunday that findings of the probe initiated by the Trump administration in mid-April into semiconductor imports on national security grounds would be announced in two weeks.

Nvidia supplier TSMC reported earlier this month forecast-beating results for the fourth quarter and issued upbeat forward guidance, citing strong demand for its leading-edge process technologies.”

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