By Adam Clark
Nvidia stock is languishing with progress on sales in China and the health of the wider artificial-intelligence sector in focus.
The chip maker's shares were down 1.3% at $182.51 in Monday's premarket trading. The stock fell 0.1% in Friday's trading session.
The stock is down 1.8% over the past month, as a flurry of robotics and autonomous-driving related announcements at the CES trade show, formerly known as the Consumer Electronics Show, failed to provide a catalyst. However, analysts see reason for optimism about Nvidia's core AI chip business.
"Throughout meetings and keynote presentations, management teams repeatedly emphasized that AI--related demand remains robust and supported by customer spending. Nvidia described demand as strong across hyperscalers, neoclouds, sovereigns, and China (H200)," wrote Truist Securities analyst William Stein in a research note.
Any sign of Chinese companies moving ahead with H200 chip purchases could be what Nvidia shares need to move again. Nvidia CEO Jensen Huang said demand for the H200 chip designed for China's AI sector is "very high" and that he doesn't expect issues from the Chinese government, in comments at CES.
Nvidia already has orders for more than two million H200 chips at a face value of $27,000 each, implying around $54 billion worth of revenue, Reuters previously reported. But authorities in Beijing have asked some technology companies to pause their orders while they decide how many domestically produced chips they should purchase alongside Nvidia's hardware, according to Reuters.
Meanwhile, investors should get a fuller picture of the AI chip market this week with earnings from Taiwan Semiconductor Manufacturing -- Nvidia's key supplier -- on Thursday. That could be another catalyst, although TSMC has already reported strong quarterly sales.
For now, it looks like Nvidia shareholders will have to be patient.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
January 12, 2026 08:54 ET (13:54 GMT)
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