According to a report by The Information, China is reportedly evaluating whether its tech firms should buy Nvidia’s H200 chips.
- The U.S. recently allowed exports of Nvidia’s H200 chips to China, reportedly affecting Beijing’s self-sufficiency plans.
- The report said Chinese officials asked the big tech firms to report demand and will decide after reviewing the responses.
- Major companies involved include Alibaba, ByteDance, and Tencent.
China reportedly called the country’s largest tech companies, such as Alibaba (BABA), ByteDance (BYTEDANCE), and Tencent (TCEHY), to the table to discuss whether they should be allowed to buy Nvidia’s (NVDA) advanced H200 chips.
According to a report by The Information, President Donald Trump’s announcement on Monday to approve exports of these high-performance chips to China has complicated Beijing’s plan to become self-sufficient.
Nvidia’s stock edged 0.8% higher in pre-market trade, amid weakness in the broader market ahead of the Federal Reserve’s rate cut decision later today. Retail sentiment on Stocktwits around the AI bellwether trended in ‘bearish’ territory over the past day.
BABA’s stock was also in the green, edging 0.5% higher in pre-market trade. On Stocktwits, retail sentiment around the Chinese tech giant trended in ‘bearish’ territory over the past day. The iShares MSCI China ETF (MCHI) gained 0.3%, with retail sentiment improving to ‘neutral’ from ‘bearish’ territory over the past day, accompanied by ‘high’ levels of chatter.
The report said government officials asked these companies to report their demand for the H200 chips. It added that once the officials collect these responses, they will decide whether the companies can purchase the chips.
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