Nvidia Accelerates China Strategy Amid Strong H200 Chip Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Source: Benzinga
- Strong Market Demand: Nvidia's founder and CEO Jensen Huang expressed optimism about robust demand for the H200 chip in China during the 2026 World Economic Forum, indicating the company's confidence in the Chinese market despite regulatory hurdles and supply constraints.
- Black Market Price Surge: Due to regulatory uncertainty, Chinese AI firms are forced to seek expensive black-market hardware, with servers containing 8 H200 GPUs commanding prices as high as 2.3 million yuan ($330,403), highlighting the urgent demand for high-performance chips in the market.
- Surge in Orders vs. Capacity Shortage: Chinese customers have lined up orders for over 2 million H200 chips, far exceeding Nvidia's current availability of approximately 700,000 units, prompting the company to urge Taiwan Semiconductor Manufacturing Co. to increase output to meet demand.
- Strategic Investment Plans: ByteDance plans to allocate about 100 billion yuan to Nvidia chips in 2026, reflecting the importance of high-performance AI hardware for Chinese tech companies and underscoring Nvidia's long-term strategic positioning in the Chinese market.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
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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