January 2, 2026, 02:51 ET — Market closed.
- Nvidia shares closed down 0.55% at $186.50 in the last U.S. session on Dec. 31. Nasdaq
- Nvidia has approached TSMC to ramp production of its H200 AI chips as China demand jumps, Reuters reported, citing sources. Reuters
- Nvidia also declined to comment on a report it is in advanced talks to buy Israel’s AI startup AI21 Labs. Reuters
Nvidia is pressing Taiwan Semiconductor Manufacturing Co to expand output of its H200 chips as orders from Chinese technology companies surge, Reuters reported, citing sources. Reuters
Nvidia shares closed down 0.55% at $186.50 on Dec. 31, the last trading day of 2025, according to Nasdaq historical data. Nasdaq
Why it matters now: investors are treating China-linked chip demand as a near-term swing factor for Nvidia’s sales outlook and for global supply tightness in AI hardware, where the company remains the bellwether. Reuters
The focus has sharpened heading into the first full trading week of 2026 as traders look for fresh signals on demand, regulatory approvals and how Nvidia allocates capacity between regions and product lines. Reuters
Chinese firms have ordered more than 2 million H200 chips for 2026, while Nvidia holds about 700,000 units in stock, two people familiar with the matter told Reuters. One source said Nvidia has asked TSMC to begin work on additional production, expected to start in the second quarter of 2026. Reuters
The H200 is a graphics processing unit (GPU), a chip used to train and run artificial intelligence models. Reuters reported the H200 is part of Nvidia’s prior-generation Hopper line, while the company is ramping newer Blackwell chips and preparing its next Rubin generation. Reuters
Regulatory uncertainty remains a key overhang. Beijing has not yet greenlit shipments of H200 chips, Reuters reported, even after U.S. President Donald Trump’s administration recently allowed H200 exports to China with a 25% fee; Chinese officials are still weighing conditions that could include tying purchases to domestically made chips. Reuters
Nvidia said it continuously manages its supply chain, and a company spokesperson said licensed H200 sales to authorized customers in China would not affect its ability to supply U.S. customers. Reuters
Another data point on the China demand debate surfaced this week. The South China Morning Post reported ByteDance plans to spend about 100 billion yuan ($14.29 billion) on Nvidia chips in 2026 if H200 sales are allowed, though Reuters said it could not independently verify the report. Reuters
Separately, Nvidia is in advanced talks to buy Israel-based AI21 Labs for between $2 billion and $3 billion, the Calcalist financial daily reported, Reuters said. Nvidia declined to comment and AI21 was not immediately available to comment, according to the report. Reuters
The stock’s latest move also came against a softer tape. Wall Street ended the year’s final session lower in thin trade, with the Nasdaq down 0.76% and the S&P 500 down 0.74%, Reuters reported, while Nvidia finished 2025 up 39% and was the first company to reach a $5 trillion market value. Reuters
Some investors expect leadership to broaden beyond megacap AI winners as 2026 progresses. “The era of narrow winners is giving way to a wider, more globally distributed opportunity set,” said Jitania Kandhari, deputy CIO of the solutions and multi-asset group at Morgan Stanley Investment Management. Reuters
Before the next session, traders will look to Nvidia’s planned CES appearance in Las Vegas on Jan. 5 for updates on its product cadence and AI strategy, after a year in which the company’s chip roadmap has repeatedly moved markets. NVIDIA
Macro catalysts are also lining up early in January, with the U.S. employment report for December 2025 due Jan. 9 and consumer price data due Jan. 13, while the Federal Reserve’s next policy meeting is scheduled for Jan. 27-28. Bureau of Labor Statistics
Nvidia’s next major company catalyst is its fourth-quarter fiscal 2026 financial results, listed for Feb. 25 on the company’s investor relations calendar. NVIDIA Investor Relations
