TLDR
- Nvidia shares hold steady at $185.00 as Chinese government asks tech firms to pause H200 chip orders temporarily
- CEO Jensen Huang reports “very high” demand with over two million H200 chips ordered from Chinese customers
- KeyBanc analyst sets $275 price target, projects 1.5 million H200 units will ship to China in 2026
- Beijing reviewing how many domestic chips companies should buy before approving foreign chip purchases
- Next-generation Vera Rubin platform expected to drive stock higher when mass production begins late 2026
Nvidia shares traded sideways on Tuesday as the chip maker navigates an unexpected pause in Chinese H200 orders. The stock held at $185.00 in premarket trading after barely moving on Monday.
CEO Jensen Huang painted an optimistic picture at last week’s CES trade show. He called demand for the H200 chip in China “very high” and said he expects no roadblocks from Chinese officials.
The reality has proven more nuanced. Chinese authorities have asked several technology companies to temporarily halt their H200 orders, Reuters reported. The move comes as Beijing evaluates the balance between foreign and domestic chip purchases.
Nvidia has accumulated orders for more than two million H200 chips. The company isn’t demanding upfront payment for these units, according to Reuters. This approach may reflect the uncertain regulatory environment.
Analysts Remain Bullish on China Opportunity
KeyBanc analyst John Vinh kept his Overweight rating intact with a $275 price target. He estimates Chinese demand for the H200 at approximately 1.5 million chips this year.
“Uncertainty remains when licenses will be approved, creating uncertainty on how many GPUs will be shipped to China,” Vinh noted in his Monday research report.
The analyst expects the stock to break out of its multi-month range once investors focus on upcoming product launches. The Vera Rubin platform represents Nvidia’s next major hardware release.
Mass production of Vera Rubin should begin by the end of the second quarter 2026. Volume production of VR NVL72 racks will ramp up in the fourth quarter 2026, according to Vinh’s projections.
New Platform Promises Major Performance Gains
DA Davidson also maintained its Buy rating after Huang’s CES presentation. The firm highlighted several key announcements about the Vera Rubin platform.
The new platform is already in full production. It delivers up to 10 times lower token cost while training mixture-of-expert models with four times fewer GPUs.
Huang announced the Alpamayo family of open source models during his keynote. These models target autonomous driving development.
DA Davidson believes Nvidia will maintain its lead over competitors like AMD and Broadcom. The firm pointed to the CES announcements as evidence of Nvidia’s sustained competitive advantage.
Competitor Stocks Show Mixed Results
Advanced Micro Devices gained 2.5% in premarket trading on Tuesday. KeyBanc upgraded AMD based on strong central processing unit sales for servers.
Broadcom dipped 0.2% during the same period. The company faces growing competition in the AI chip market despite maintaining strong financial metrics.
The H200 chip was specifically engineered for the Chinese market. It complies with U.S. export restrictions while serving China’s expanding AI sector.
Beijing’s request for companies to pause orders came after Huang’s optimistic comments at CES. The timing suggests Chinese officials want more control over the domestic chip ecosystem before approving large-scale foreign purchases.
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