Nvidia has struggled to gain a foothold in China because of US Commerce Department export restrictions in place since 2022. The New York Times reported that US intelligence believes Alice Huang, a leader at Nvidia customer Megaspeed with a well-documented relationship with Jensen Huang, acted as an intelligence asset and passed information to China's governing party, raising questions about information leakage from Nvidia. In December 2025, the Trump administration allowed some H200 chip exports after a $5 million lobbying push during the year, but H200 sales made up less than 1% of Nvidia's $89 billion second-quarter data center revenue, as Beijing blocked Chinese buyers from purchasing Nvidia chips. Nvidia said its forward outlook includes no China data center compute revenue. The article also describes a black-market trade smuggling chips through Southeast Asia and Blackwell B300 chips being openly sold on Douyin at millions of US dollars per server.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
NVDAsemiconductorsChinaexports
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/28/2026 | 215.39 |
| Change that session | -1.17% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Nvidia responds to report Jensen Huang was target of Chinese asset, says diversion allegations were 'investigated and debunked'
Nvidia has rejected a New York Times report that US intelligence agencies monitored Alice Huang, who is linked to Singapore-based cloud provider Megaspeed and is close to CEO Jensen Huang, over suspicions she could be a Chinese intelligence asset. According to the report, the agencies feared she could help Beijing obtain information from Nvidia and gain access to President Donald Trump through Huang. In a statement to CNBC, Nvidia said Megaspeed is one of its regional cloud customers, that Huang's contact with its officials is routine, and that customers do not get access to trade secrets or sensitive national security information. The company said allegations that Megaspeed helped evade US export controls were 'thoroughly investigated and debunked last year', and that the US government would let it know if it considered anyone a threat. Nvidia also noted that Washington cleared H200 chip shipments to China earlier this year, but Chinese regulators blocked imports, leading to about $4.5 billion in write-offs of China-tuned AI chips last year.
- Pictured: Nvidia boss ‘targeted by Chinese spy’
According to US intelligence officials, Nvidia CEO Jensen Huang was courted by Alice Huang, a senior executive at Singapore-based Megaspeed, whom US officials believe passed information to Chinese intelligence agencies. The New York Times reported that Donald Trump was briefed on the matter, and Jensen Huang has been photographed with Alice Huang at events in Taiwan. A report by short-seller Culper described the two as “very close,” while Nvidia said the interactions were “not unusual or unexpected.” Megaspeed is one of Nvidia's biggest Asian customers, and officials are investigating whether it helped Chinese companies evade US chip export controls; Nvidia says those claims were “thoroughly investigated and debunked.” In January, Trump partially reversed the export ban, allowing sales of less powerful Nvidia AI chips while imposing a 25% tariff on sales to Chinese customers.
- Jensen Huang's Late-Night Calls With President Trump Come as Nvidia's China AI Chip Shipments Fall 44% in the First Half of 2026. Here's Why His Access Matters.
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.
- Nvidia (NVDA) Has Lost Its China AI Accelerator Market
Nvidia (NasdaqGS:NVDA) has effectively lost its China AI accelerator market after U.S. export controls restricted shipments of advanced GPUs. Specialist financiers are structuring large facilities backed by Nvidia GPU inventory, treating high-end chips as core collateral for AI infrastructure projects. Enterprise customers are also rolling out liquid-cooled, rack-scale agentic AI factories, including deployments built on Supermicro server platforms. According to the article, the loss removes a major growth pool for Nvidia's data center segment, putting more weight on non-China demand from neoclouds and sovereign AI projects, which analysts expect to support multi-year revenue expansion. The article also cites capital scarcity, rather than end demand, as the binding constraint for many neocloud and enterprise buyers.
- The Hardware Ceiling: ByteDance, Alibaba, and Tencent Bet $35B on the RTX PRO 5500
According to a Reuters report from October 20, ByteDance, Alibaba and Tencent have together placed orders for over 3 million export-compliant NVIDIA workstation GPUs, with a combined list price above $35 billion, which the article says is double the global production cap. Total Chinese orders for the RTX PRO 5500 have exceeded 6 million units, a potential market value of over $70 billion, yet NVIDIA has told partners it can fulfill only 5-10% of requested volume. The global production cap for the RTX PRO 5500 is 3 million units for 2027, so even diverting all global output to China would fall short. The Blackwell-based card has 21,760 CUDA cores and 84GB of GDDR7 memory, and its export compliance lets it serve as a legal high-performance compute option in China. The article argues that silicon has become the primary point of control in the AI race, so deploying large-scale models increasingly depends on hardware procurement.
- ByteDance, Alibaba and Tencent order $35 billion of Nvidia chips: Reuters
Nvidia has told customers it cannot guarantee fulfilling orders for its RTX PRO 5500 graphics cards, as demand from Chinese tech companies exceeds planned production, according to Reuters. ByteDance, Alibaba and Tencent ordered more than 3 million cards worth over $35 billion, at about $11,400 each. Nvidia reportedly told partners they might receive only 5% to 10% of requested quantities, and it can produce no more than 3 million RTX PRO 5500 cards globally in 2027. Total orders from Chinese customers exceed 6 million units. The RTX PRO 5500 is among the most powerful Nvidia chips still available to Chinese buyers under U.S. export restrictions, which bar the B300 and require case-by-case licensing for the H200.
Related markets
Latest news
- Alphabet Stock Drops 12%. Can Its Dividend Survive the AI Spending Boom?
Alphabet shares fell roughly 12% to around $285 after free cash flow turned negative for a second straight quarter, reaching negative $9.07 billion in the third quarter. Capital expenditure rose 114.4% year over year to $51.36 billion, above operating cash flow of $42.29 billion, mostly for AI infrastructure. The company pays a $0.22 quarterly dividend, which took about 6.9% of operating cash flow in the second quarter ($2.689 billion), and it holds $56.33 billion in cash. The gap is being filled by $28.7 billion in net proceeds from senior notes and new shares sold through an at-the-market program, while buybacks dropped to zero in the second quarter and the program was suspended. The article judges the dividend not at major risk for now, and says the next annual dividend decision is the key signal to watch.
- US Gold Targets Debt-Funded $400M CK Gold Build as Financing Talks Advance
Executive Chairman Luke Norman of US Gold says the company is advancing financing talks for its fully permitted CK Gold Project in Wyoming, targeting a predominantly debt-funded construction package of less than 400 million USD while keeping about 25 million USD in treasury for corporate needs. The project has a reported reserve of about 1.6 million gold-equivalent ounces with an 11-year mine plan, and management aims to raise annual output toward about 100,000 ounces, with all-in sustaining costs estimated at 1,700 to 1,800 USD per ounce. Construction would take about 18 months after financing is finalized, and management would like a definitive agreement around January, though none has been announced. The company is also considering separating its Keystone exploration project in Nevada into a standalone structure.
- We're downgrading Alphabet after its rough quarter. Here's where we'd buy again
The S&P 500 and Nasdaq slipped on Thursday as post-earnings sell-offs hit technology stocks including Alphabet, ServiceNow and Fortinet. The CNBC Investing Club cut its Alphabet rating from 1 to 2 and lowered its price target to $350 from $400, but is keeping the position because of momentum in the Cloud business. The club said it would reassess if the price-to-earnings multiple falls from about 19x to the 17x-18x range and AI Mode monetization improves.
- Alphabet's Cloud Business Just Doubled. The Stock Fell 12%. Is it a Buy?
Alphabet reported third-quarter results after the close on Wednesday, and the stock fell about 10% in after-hours trading as earnings and revenue missed estimates amid heavy AI spending. Most of the earnings hit was an unrealized $8.7 billion loss on equity securities, mainly tied to its SpaceX investment, which cut EPS by $0.55, while operating income rose 30% to $40.6 billion. Google Cloud revenue more than doubled to $30.7 billion at a margin of about 36%, and its backlog reached $561 billion, up from $514 billion three months earlier. Search revenue grew 12%, down from about 17% in the second quarter, while capex of $51.4 billion pushed free cash flow to negative $9.1 billion and spending is expected to rise significantly in 2027. The author says investors are not yet convinced of the return on this spending, but that the stock's 21x forward earnings multiple after the decline may merit a closer look for long-term investors.
- Is Lockheed Martin a Buy After Its Latest Earnings Report?
Lockheed Martin shares have risen nearly 15% since last week's third-quarter results and are up 29% year to date, versus a 12% gain for the S&P 500. The company reported a record backlog of $292 billion, up 63% over the past four quarters from $179 billion, and raised its 2026 free cash flow expectation from a midpoint of $6.65 billion to $7.9 billion. Missiles and Fire Control (MFC) grew sales 24% and contributed nearly 29% of operating profit despite under 22% of revenue, while a seven-year PAC-3 contract is worth $58.6 billion. The stock trades at nearly 23 times trailing P/E versus 18 times for Northrop Grumman, and the author notes the market already prices in much of the expected growth. The author views the company as a growth story for long-term exposure to the defense sector and suggests watching for sustained sales growth that drives higher profit margins.
- Why Marvell Stock Is Down Today
Marvell Technology shares fell 13.9% as of 2:44 p.m. ET on Thursday, October 29, after Bloomberg reported that the chipmaker is in advanced talks to acquire Lumentum, a maker of optical components for AI data centers. The report said an announcement could come as early as next week, though nothing has been finalized. Marvell has about $3.93 billion in cash and equivalents, and with Lumentum's $83 billion market cap, the deal is likely to be mostly stock, which would dilute existing shareholders. Marvell's optics acquisition last year was a smaller $3.5 billion deal that included $1 billion in cash. Meanwhile, Marvell's second-quarter revenue rose 37% to a record $2.74 billion.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.