Nvidia Reportedly Just Landed $35 Billion In Chip Orders From Chinese Companies. Here's Why That Could Be Great News for the Stock
The company has sold hardly any chips to China since early last year, due to government restrictions.
Nvidia has reportedly secured a $35 billion chip order from Chinese companies, including ByteDance, Alibaba, and Tencent, according to Reuters. This could be a positive development for the stock, as it demonstrates strong demand for the company's Blackwell chips. However, Nvidia has faced challenges in meeting these orders due to production capacity limitations.
The company sold less than 1% of its data center revenue to Chinese customers in 2025 due to national security concerns, but CEO Jensen Huang successfully negotiated a deal to cede 15% of its Chinese chip sales to the government. Nvidia's CFO, Colette Kress, mentioned that Hopper sales are dilutive to gross margins, so the shift to Blackwell chips is positive.
While investors are eager to learn more about the Chinese orders on the company's next earnings call, the stock has seen limited movement since the news broke.
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