China plans to let top AI firms buy limited NVIDIA Corporation (NVDA) H200 chips, the Information reports

We recently published Ray Dalio Stock Portfolio: 10 Best Stocks to Buy. NVIDIA Corporation (NASDAQ:NVDA) is one of Ray Dalio’s best stocks to buy.

On July 8, Reuters cited  The Information report, citing two people with direct knowledge of the matter, that China is preparing to let leading domestic AI companies purchase a limited number of NVIDIA Corporation (NASDAQ:NVDA)’s Nvidia H200 chips.

Reuters said Chinese officials recently told Alibaba, ByteDance, and DeepSeek they could soon receive approval to buy the chips, sending NVIDIA Corporation (NASDAQ:NVDA) shares jumping by 1%. Beijing has not finalized the allocation. The Information said approvals could total fewer than 200,000 chips, less than half the volume companies requested earlier this year.

China plans to let top AI firms buy limited NVIDIA Corporation (NVDA) H200 chips, the Information reports

Reuters said the US government has already cleared the AI chip giant to sell H200 chips to China and licensed about 10 Chinese companies to buy them. On the other hand, Chinese authorities have so far withheld approval while supporting domestic suppliers.

Reuters also reported last month that the company told Chinese customers its new Vera AI data center processors could become available as early as August. The potential policy move shows the computing capacity shortage facing China’s AI industry, Reuters commented.

NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures computer graphics processors, chipsets, and related multimedia applications. It works in the graphics processing unit and compute and networking divisions.

While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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