$35B Chinese GPU Order Reported, But Nvidia Shares Still Slide
NVDA sits 31% above its 52-week low of $164.27.
Summary
Alibaba, Tencent and ByteDance reportedly ordered more than 3 million Nvidia RTX PRO 550 graphics cards worth over $35 billion, per Reuters. That is real demand from China despite US export restrictions, and Nvidia has told partners it cannot guarantee it can fill the orders because they exceed planned production. The stock is still down 0.8% premarket after a 1.4% bounce Monday, and it has lost more than 10% over two weeks as the chip sector sells off on worries about the debt and spending behind the AI buildout. The market is treating supply tightness and China demand as secondary to that broader de-rating, and the shares remain below their 50-day moving average. Q3 guidance of $108B from the August 26 8-K is the next hard checkpoint on whether demand like this converts to revenue.
At the time of this announcement, NVDA was trading at $215.30 on NASDAQ in the Technology sector, with a market capitalization of approximately $5.2T. The 52-week trading range was $164.27 to $243.37. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.