Nvidia Stock Rises. Why Its AI Chip Sales Are Set to Boom in China.

Nvidia chips are the favored choice for training artificial-intelligence models. (David Paul Morris/Bloomberg)

Nvidia stock was rising Tuesday with sales of its artificial-intelligence processors seemingly poised to surge in China.

The chip maker’s shares were up 1.2% at $178.84 in early trading. The stock rose 1.9% on Monday, marking another record close.

While attention is on U.S. technology company earnings and what they say about AI demand—with Amazon.com, Microsoft, and Meta Platforms all reporting this week—Nvidia also looks set to benefit from sales in China.

Nvidia has placed an order for 300,000 of its H20 chips for the Chinese market with Taiwan Semiconductor Manufacturing , adding to an existing stockpile of between 600,000 and 700,000 to meet strong demand, Reuters reported Tuesday, citing anonymous sources.

Nvidia declined to comment on the report. The Trump administration recently reversed its export curbs on the H20 chip, which Nvidia said cost it $10.5 billion in revenue across its April and July quarters.

Among other chip makers, Advanced Micro Devices was rising 2.9% and Broadcom was up 1.9% in morning trading.

Write to Adam Clark at adam.clark@barrons.com