New York, Jan 10, 2026, 12:47 ET — Market closed
- Sources familiar with the situation said Nvidia has tightened payment terms for its H200 AI chips destined for China.
- The stock closed Friday down 0.1%, while AI-related chip names showed a mixed finish.
- Coming up next week: U.S. inflation figures and Nvidia’s earnings report for February 25.
Nvidia (NVDA) is now requiring full upfront payment from Chinese buyers of its H200 AI chips, sources familiar with the situation said, tightening sales terms amid regulatory scrutiny over import approvals. Chinese firms have ordered more than 2 million units, each costing about $27,000, far exceeding Nvidia’s available stock of roughly 700,000 chips. The stock closed Friday down 0.1% at $184.86, fluctuating between $183.69 and $186.97 during the session. (Reuters)
This is crucial since China represents a major source of demand for data-center processors that power large AI models. Changes in approvals, licensing, or customer budgets can cause revenues to fluctuate—often suddenly.
The timing is critical as investors dissect the AI stocks trade into sub-themes: chips, cloud spending, power, and increasingly, export risk. Nvidia stands right at the crossroads, making even minor policy shifts quickly reflected in its stock price.
U.S. policy shifted once already. Last month, President Donald Trump rolled back a Biden-era ban, permitting H200 sales with a 25% fee paid to the U.S. government. This move came after Nvidia took a $5.5 billion hit on inventory when the earlier ban disrupted its China business, the report said. Nvidia CEO Jensen Huang noted demand in China remains “quite high,” and the company has “fired up our supply chain” to boost production. (Investing)
The stricter payment rule pushes the risk of abrupt policy shifts onto buyers, forcing them to pay upfront before chip clearance is confirmed. This can drag down orders at the edges, even if final demand remains intact.
Other AI-related chip stocks ended the week unevenly. Broadcom (AVGO) climbed 3.7% on Friday. AMD (AMD) slipped 0.7%, and Taiwan Semiconductor’s U.S.-listed shares added 1.7%.
The broader market pushed higher, with the S&P 500 hitting a new record and the Philadelphia SE Semiconductor index climbing to its own peak. Zachary Hill, head of portfolio management at Horizon Investments, noted that investors are digging into the AI sector more selectively, sorting out winners and losers. He described this as a move toward more tangible monetization. (Reuters)
Nvidia spent the week pushing the narrative beyond data centers. At CES in Las Vegas, it unveiled a new autonomous-driving platform set to power a robotaxi alliance involving Lucid, Nuro, and Uber. But Infineon CEO Jochen Hanebeck cautioned against “market fantasy,” stating, “I don’t see, really now, a tsunami flowing towards Level 5”—the industry term for full self-driving. (Reuters)
China’s payment crackdown might still drag on sentiment, especially if it causes delays or if Beijing requires buyers to combine Nvidia chips with domestic options. A fresh tweak to U.S. export rules would pile on more uncertainty for AI hardware profits.
TSMC reported a 20.45% jump in fourth-quarter revenue compared to last year, surpassing expectations thanks to strong demand for AI chips. The company will release its full quarterly earnings and update its guidance on Jan. 15, providing insight into capacity and spending trends across the chip supply chain. (Reuters)
Upcoming macro data may drive the next move, starting with the U.S. consumer price index on Tuesday, Jan. 13, then producer prices on Wednesday. Strong inflation readings typically lift Treasury yields, putting pressure on high-growth tech stocks. (Bureau of Labor Statistics)
Nvidia is set to report its fourth-quarter earnings on Feb. 25, a key date for the stock. Investors will be focused on updates around China approvals, the supply situation for the H200, and the pace at which its latest platforms are gaining traction in data centers and automotive markets. (Nvidia)
