According to Reuters, ByteDance, Alibaba and Tencent have reportedly ordered more than $35 billion of Nvidia's RTX PRO 5500 graphics cards at list prices, though Nvidia may deliver only a fraction because Chinese demand exceeds planned production capacity. IDC reports Nvidia's shipments of data center AI chips to China fell 44% year over year in the first half of 2026, while Huawei held 28% of China's data center AI accelerator shipments versus Nvidia's 34%. The article argues political access does not guarantee sales: Nvidia received licenses for limited H200 shipments, but Chinese restrictions kept it from selling the full permitted amount, and those shipments were under 1% of data center quarterly revenue. Nvidia's second-quarter fiscal 2027 revenue rose 106% to $96.2 billion, and its third-quarter guidance of $108 billion assumes no China data center compute revenue, so restored China sales could add revenue beyond guidance. The author notes shareholders should separate that potential from realized profit.
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Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/27/2026 | 217.88 |
| Change that session | +0.87% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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