New York, January 28, 2026, 09:22 ET — Premarket
Nvidia shares climbed 1.1% in premarket trading Wednesday, hitting $188.52. The gain came after reports that China has given the green light for ByteDance, Alibaba, and Tencent to purchase over 400,000 of Nvidia’s H200 AI chips, according to people familiar with the situation. However, the approvals come with conditions still under negotiation. (Reuters)
The China approval arrives as the market shifts back into chip stocks ahead of Wednesday’s Federal Reserve decision, where rates are forecast to hold steady at 3.5%–3.75%. “There is a sense of increasing optimism,” noted Louise Dudley, portfolio manager at Federated Hermes, with investors turning their focus toward earnings instead of earlier macro concerns. (Reuters)
The real earnings test kicks off after the close, with Microsoft, Meta Platforms, and Tesla reporting. “Expectations are very high,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial. He added there’s “less room for them to disappoint” as investors look for signs that big AI investments are translating into profits. (Reuters)
Nvidia’s supply chain gave the semiconductor sector a fresh lift. SK Hynix, one of its major suppliers, reported record quarterly profits and said the AI boom will keep memory-chip demand surging. The company has established a strong position in high-bandwidth memory (HBM), a type of advanced memory that sits alongside AI processors to accelerate data processing. Macquarie Equity Research estimates SK Hynix holds 61% of the HBM market. (Reuters)
ASML, the equipment giant, added fuel to the fire. The Dutch company posted record Q4 bookings — a key indicator of new orders — and raised its 2026 forecast amid a surge in demand from AI chip producers like Nvidia. “The orders and outlook were driven by AI demand for EUV,” said Mizuho analyst Kevin Wang, referring to the extreme ultraviolet tools essential for manufacturing the most advanced chips. (Reuters)
For Nvidia, what’s happening in China carries weight beyond the headlines. Data-center clients have been ramping up capacity quickly, so any shift in China’s market can swing shipment volumes from one quarter to the next.
But these approvals come with strings attached, and buyers might find it tough to turn them into solid purchase orders if conditions worsen or policies shift again on either side of the Pacific. A tougher crackdown on U.S.-China chip exports would swiftly sour sentiment, since investors link Nvidia’s growth closely to its ability to export.
Traders will zero in on the Fed statement and Chair Jerome Powell’s remarks Wednesday, hunting for any hints that could shift rate expectations—and send pricey tech stocks on a quick move. Megacap insights on data-center spending will also draw scrutiny, as investors look for clues about Nvidia’s demand.
Nvidia’s next major event is its fiscal Q4 2026 earnings report on Feb. 25. Investors will zero in on the company’s outlook for data-center expansion and any fresh details regarding sales tied to China. (NVIDIA Investor Relations)
