DeepSeek Cleared to Purchase Nvidia Chips Amid Regulatory Scrutiny
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 31 2026
0mins
Should l Buy BABA?
Source: Benzinga
- Purchase Approval: China has cleared DeepSeek to buy Nvidia's H200 AI chips, although the deal is subject to regulatory conditions still being finalized, indicating ongoing demand for high-end AI chips and potentially alleviating market concerns about declining Nvidia demand.
- Tech Tensions: The H200 chip is Nvidia's second-most powerful AI chip and has become a focal point in U.S.-China tech tensions; while the U.S. has approved exports to China, the final shipment decisions remain under Chinese government control, highlighting complexities in international trade.
- Market Reaction: DeepSeek's earlier introduction of a low-cost AI model raised concerns about high-end AI chip demand, leading to a significant drop in Nvidia's stock price, but the potential purchase by DeepSeek may signal continued reliance on Nvidia hardware, reflecting that demand for advanced technology remains strong.
- Future Outlook: DeepSeek is expected to release its next-generation AI model, V4, in mid-February, and the anticipation surrounding its new product could further drive demand for Nvidia chips, despite facing geopolitical scrutiny and regulatory challenges.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 141.010
Low
180.00
Averages
203.09
High
230.00
Current: 141.010
Low
180.00
Averages
203.09
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through four segments. The Alibaba China E-commerce Group segment is mainly engaged in E-commerce business, including operating Tmall Supermarket and Tmall Global, providing customer management services, product sales, as well as logistics services. It also operates quick commerce business such as Taobao Instant Commerce and Ele.me, as well as the China commerce wholesale business through 1688.com. The Alibaba International Digital Commerce Group segment is mainly engaged in international commerce retail and wholesale business, operating platforms such as AliExpress, Trendyol, Lazada and Alibaba.com. The Cloud Intelligence Group segment mainly provides public and non-public cloud services. The Other segments primarily include the operations of Freshippo, Cainiao, Alibaba Health and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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