China May Allow Alibaba, ByteDance to Buy New Nvidia Chip; NVDA Eyes Monday

According to a Sunday report from The Information, China is considering allowing Alibaba and ByteDance to purchase a new Nvidia chip. NVDA shares ended Friday at $225.07, and the market will have its first opportunity to respond on Monday.

The new chip is a high-performance card designed for professional computers, not the data-center hardware that Nvidia previously sold in large quantities to China.

What China Is Reportedly Weighing

Citing two sources familiar with the matter, The Information reports that China's Ministry of Industry and Information Technology (MIIT) has asked Alibaba and ByteDance to specify how many RTX PRO 5500 cards they require and their reasons.

The report notes that Chinese AI companies face a shortage of computing power for their chatbots and agents. Neither the Chinese government nor the companies have confirmed the plan.

Nvidia markets the RTX PRO 5500 for AI agents, inference, and simulation. The card features 84 GB of memory and a 600-watt power draw. As a workstation component, it falls outside the data-center chips subject to US export restrictions.

How NVDA Stock Reacted to China Chip News Before

Nvidia states that its $108 billion forecast for the current quarter does not include any revenue from China data-center chips. Any such sales would be incremental to that guidance.

The previous significant China-related news moved in the opposite direction. In September 2025, Beijing instructed companies to halt purchases of Nvidia's RTX Pro 6000D, causing the stock to drop 2.6% on that day.

“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.

Sunday's report comes just days after President Donald Trump hosted Chinese President Xi Jinping in Washington. According to the Korea Times, US Trade Representative Jamieson Greer stated that national security export controls were taken “off the table.”

Analysts cited by the outlet say that Huawei and Cambricon together account for nearly 80% of China's AI server market. Domestic competitors continue to expand, as demonstrated by Enflame's recent Shanghai listing.

What Traders Will Watch Monday

Wall Street is already positioned bullishly. All 31 analysts monitored by TipRanks have a buy rating on the stock, with an average price target of $324.32.

The report did not specify how many cards China might authorize or a timeline. It also offered no indication that larger data-center chips would be permitted. Nvidia's stock has historically fluctuated on China-related news, including after President Trump's call with CEO Jensen Huang this month.