Tencent Accesses Nvidia's Blackwell AI Chips via Overseas Cloud Computing
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2025
0mins
Source: Benzinga
- Cloud Computing Strategy: Tencent is leveraging a cloud computing arrangement in Japan to access Nvidia's Blackwell AI chips, despite U.S. restrictions on sales to China, enabling Tencent to maintain a competitive edge in the global AI technology landscape.
- Contract Scale: Datasection has secured over $1.2 billion in contracts with Tencent, primarily for the rental of its initial batch of 15,000 Blackwell chips, which not only ensures Tencent's resource acquisition for AI training but also underpins Datasection's rapid rise in the market.
- Market Response: While Datasection's stock has faced pressure due to concerns over capital spending and regulatory compliance, its plans to build AI data centers across Japan, Australia, and potentially Europe demonstrate its expansion capabilities and market potential.
- Compliance Statement: Tencent has stated that its use of cloud computing services is fully compliant with applicable laws, ensuring its legality and transparency in a complex international trade environment.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 184.840
Low
200.00
Averages
264.97
High
352.00
Current: 184.840
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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.
