NVIDIA (NVDA) H200 Chips Key to China's AI Data Center Expansion Plans

NVIDIA Corporation (NASDAQ:NVDA) is included in our list of the best AI data center stocks to buy now.

A Reuters report published on January 28, 2026, reported that Chinese authorities confirmed the purchase of more than 400,000 NVIDIA Corporation (NASDAQ:NVDA) H200 Artificial Intelligence chips by three major digital giants: ByteDance, Alibaba, and Tencent. This appears to reflect a calculated change in Beijing’s attitude toward cutting-edge U.S. semiconductors.

Beijing’s efforts to balance its growing AI infrastructure with its push to advance domestic chip development are reflected in the approvals granted during NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang’s visit to China, with the conditions yet to be finalized. Even though U.S. authorities allowed Nvidia to export the H200 to China, Beijing maintains final authority. In the past, China has blocked shipments and required foreign chip purchases to be paired with domestic alternatives.

Chinese companies are reportedly placing orders for more than two million H200 chips, far exceeding NVIDIA Corporation (NASDAQ:NVDA)’s existing supply, indicating that demand is still strong. While policy restrictions add an element of uncertainty to the pace and volume of future shipments, the H200, which offers about six times the performance of NVIDIA’s H20 chip, has become crucial to China’s race to scale data centers and compete with U.S. AI leaders.

NVIDIA Corporation (NASDAQ:NVDA) develops GPUs and accelerated computing platforms for gaming, data centers, networking, automotive, and AI software. With these, the company enables high-performance computing and artificial intelligence workloads for businesses, cloud providers, developers, and consumers worldwide.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.