New York, January 8, 2026, 5:19 PM EST — After-hours
Nvidia shares fell on Thursday after Reuters reported the chipmaker is demanding full upfront payment from Chinese customers for its H200 data-center chips, used to train and run AI models. The stock slipped 2.1% to $185.04 in late trading, after hitting $190.28 earlier and falling as low as $183.77. Chinese firms have placed orders for more than 2 million H200s priced around $27,000 each, far above Nvidia’s inventory of about 700,000 units, as local alternatives still lag for large-scale AI training.
The tighter terms land as investors turn more selective on AI-linked megacaps after two years of heavy spending on data centers and chips. Nvidia slid 2.2% in the regular session, while Broadcom dropped 3.2% and Microsoft fell 1.1%. “It’s become a ‘show me’ sector,” said Art Hogan, chief market strategist at B. Riley Wealth. Reuters
Rate bets are adding friction. The Chicago Fed estimated the U.S. jobless rate held at 4.6% in December, ahead of the official reading due on Friday; markets were pricing about a 10% chance of a Fed cut at the January meeting and about 55% by April, Reuters reported. Higher-for-longer rates tend to weigh more on richly valued growth stocks, including the AI leaders.
At CES in Las Vegas on Tuesday, CEO Jensen Huang said he did not expect a formal Beijing announcement on approvals and that “purchase orders” would be the signal. CFO Colette Kress said the U.S. government was “working feverishly” on license applications for H200 shipments to China, adding: “We’re going to wait and see what will happen.” Reuters
Nvidia has also been trying to keep attention on its next product cycle. Huang said earlier this week the company’s next generation of chips is in “full production” and can deliver five times the AI computing of its prior silicon for chatbots and other applications, according to a Reuters video report. Reuters
With the U.S.-China sales channel still uncertain, the next hard checkpoint is earnings. Nvidia’s investor calendar lists its fourth-quarter fiscal 2026 financial results for February 25. Investors will be looking for any change in the tone on China shipments, supply and customer spending plans that support revenue visibility into 2026.
But the stricter payment terms also underline the downside case. Beijing could delay approvals or steer buyers toward domestic chips, while a broader pullback in data-center capital spending would test expectations baked into the top AI names.
The next near-term catalyst is Friday’s U.S. employment report for December, due at 8:30 a.m. ET, alongside any fresh signal from Beijing on H200 import approvals and order flow.
