According to a Sunday report by The Information, China might permit ByteDance and Alibaba to purchase a new Nvidia chip. NVDA stock closed at $225.07 on Friday, setting the stage for its initial market reaction when Wall Street opens on Monday.
Rather than the bulk data-center hardware previously sold by Nvidia to China, this product is a high-performance card designed for professional computers.
What China Is Reportedly Weighing
Two individuals familiar with the situation told The Information that China’s Ministry of Industry and Information Technology (MIIT)—the agency overseeing the technology sector—has inquired with the two companies regarding their required quantities and intended uses for the RTX PRO 5500 cards.
The publication noted that Chinese artificial intelligence enterprises are experiencing a deficit of computing power for agents and chatbots. Neither the companies nor Beijing has officially confirmed this initiative.
Nvidia promotes the workstation component for simulation, AI inference, and AI agents. Featuring 84 GB of memory and a power draw up to 600 watts, it operates outside the scope of US export restrictions that target data-center chips.
How NVDA Stock Reacted to China Chip News Before
Nvidia states that its current-quarter forecast of $108 billion does not factor in any revenue from Chinese data-center chips, meaning any sales generated there would represent upside to that projection.
Previous major headlines from China brought adverse market reactions. In September 2025, when Beijing instructed companies to halt purchases of Nvidia’s RTX Pro 6000D, the stock dropped 2.6% during the session.
“I think that we could only be in service of a market if the country wants us to be,” Nvidia CEO Jensen Huang said at the time.
The report on Sunday emerged shortly after President Donald Trump met with Xi Jinping in Washington. The Korea Times reported that US Trade Representative Jamieson Greer stated national security export controls were taken “off the table.”
In the interim, analysts referenced by the publication pointed out that Huawei and Cambricon control nearly 80% of the AI server market in China. Domestic competitors continue to expand, highlighted by Enflame’s Shanghai market debut this month.
What Traders Will Watch Monday
Wall Street maintains a bullish stance. TipRanks tracks 31 analysts who all rate the stock as a buy, carrying an average price target of $324.32.
The report omitted details regarding a timeline or the specific volume of cards China might authorize. Furthermore, it provided no indication that larger data-center chips would be approved next. Nvidia shares have frequently fluctuated based on developments in China, including following Trump’s phone call with Huang this month.