Nvidia stock notched its third record high in as many trading sessions Tuesday on a report that the chipmaker has placed a large order of AI chips for China now that U.S. trade restrictions have been lifted.
Reuters reported that Nvidia has placed an order for 300,000 H20 chipsets to be made by contract manufacturer Taiwan Semiconductor Manufacturing. The new order shows Nvidia's confidence that it can sell more than its existing stockpile of 600,000 to 700,000 H20 chips.
The Trump administration earlier this month agreed to let Nvidia resume sales of H20 graphics processing units to China, reversing a ban imposed in April that was designed to keep AI chips out of Chinese hands due to national security concerns.
Nvidia designed the H20 specifically for the Chinese market to meet Biden administration export restrictions. The H20 is a throttled version of Nvidia's prior-generation Hopper series H100 processor.
Nvidia sold around 1 million H20 chips in 2024, according to U.S. research firm SemiAnalysis, Reuters said.
Still, Nvidia needs to obtain export licenses from the U.S. government to ship the H20 chips. But it expects those to be granted soon, the report said.
Nvidia Stock Is On Five IBD Lists
On the stock market today, Nvidia stock rose in morning trades before turning south. It ended regular-session trading down 0.7% to 175.51. In intraday trading, it hit an all-time high of 179.38.
"Obviously this news, if accurate, is a positive result for Nvidia," Wedbush Securities analyst Matt Bryson said in a client note. "However, there also should be beneficial ramifications for other portions of the server supply chain (e.g. CPUs, storage, memory, cooling, etc.) as other components are sourced to support AI build-outs."
Bryson rates Nvidia stock as outperform with a price target of 175.
Nvidia stock is on five IBD lists: IBD 50, Leaderboard, Big Cap 20, Sector Leaders and Tech Leaders.
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