Nvidia Corp. (NASDAQ: NVDA | NVDA Price Prediction) is selling chips to Chinese companies, but then it is not. Its chip sales to firms in the world’s most populous country and the second largest by gross domestic product have been part of brutal trade negotiations with the United States. 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.
A $50 Billion Opportunity
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.
Skeptics about Nvidia’s future have been unable to drag down the stock. It is up 1,351% in the past five years. The market is absolutely convinced the AI bubble does not exist, despite growing competition and stupendous investment. AI is the wave of the future, these investors say, and the most important technology in history.
The China news is one reason to get on board a stock that has defied gravity for years.
Nvidia Stock Price Prediction and Forecast 2026–2030
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