According to a Sunday report from The Information, Beijing may permit Alibaba and ByteDance to acquire a new semiconductor from Nvidia. Following Friday’s closing price of $225.07, NVDA stock faces its initial opportunity to respond when the market opens on Monday.
Rather than the bulk data-center hardware that Nvidia previously exported to China, this specific product is a high-performance card designed for professional workstations.
What China Is Reportedly Weighing
Based on information from two sources familiar with the situation cited by The Information, China’s Ministry of Industry and Information Technology (MIIT)—the agency responsible for regulating the technology industry—has inquired with both companies regarding their required quantities and intended uses for the RTX PRO 5500 cards.
The publication noted that Chinese artificial intelligence enterprises are currently facing a shortage of computing resources required to run their chatbots and agents. Neither the government in Beijing nor the individual corporations have officially confirmed these plans.
Nvidia promotes this hardware for simulation, AI inference, and AI agents. Featuring 84 GB of memory and a power consumption of up to 600 watts, the component is classified as a workstation part, placing it outside the scope of United States export restrictions that target data-center chips.
How NVDA Stock Reacted to China Chip News Before
Nvidia has stated that its current-quarter forecast of $108 billion does not factor in any revenue from data-center chips in China. Any potential sales in the region would represent upside beyond that projection.
Previous major headlines regarding the Chinese market have moved shares in the opposite direction. In September 2025, when Beijing instructed local firms to halt purchases of Nvidia’s RTX Pro 6000D, the stock dropped 2.6% during the session.
“I think that we could only be in service of a market if the country wants us to be,” Nvidia CEO Jensen Huang said at the time.
The release of Sunday’s article follows shortly after President Donald Trump hosted Xi Jinping in Washington. The Korea Times reported that Jamieson Greer, the US Trade Representative, stated that national security export controls were kept “off the table.”
At the same time, analysts referenced by the publication pointed out that Huawei and Cambricon control nearly 80% of China’s market for AI servers. Domestic competitors continue to expand their presence, as demonstrated by Enflame’s market debut in Shanghai this month.
What Traders Will Watch Monday
Sentiment on Wall Street remains heavily optimistic. TipRanks data shows that all 31 tracked analysts maintain a buy rating on the stock, with a consensus price target of $324.32.
The report omitted details regarding the exact volume of cards China might authorize or the timeline for approval. It also provided no indication that the clearance of larger data-center processors would follow. Historically, Nvidia shares have experienced volatility tied to developments in China, including market reactions following a recent phone call between Trump and Huang.
Frequently Asked Questions
What chip are Alibaba and ByteDance reportedly allowed to buy?
According to The Information, China may allow them to purchase Nvidia’s RTX PRO 5500, a high-end card built for professional computers and workstations.
Does this report affect Nvidia’s data-center chip sales to China?
No. The RTX PRO 5500 is a workstation part rather than a data-center chip, meaning it falls outside current US export curbs and is not included in Nvidia’s data-center revenue forecasts for China.
How have analysts rated NVDA stock?
All 31 analysts tracked by TipRanks rate Nvidia stock as a buy, with an average price target of $324.32.
Where does Nvidia’s current-quarter forecast stand regarding China?
Nvidia’s $108 billion forecast for the current quarter assumes zero revenue from China data-center chips, meaning any sales resulting from this news would be additive.
