Nvidia (NVDA) reportedly received orders exceeding 2 million H200 chips from Chinese tech companies for 2026 delivery. Current inventory stands at only 700,000 units.
Nvidia asked Taiwan Semiconductor to ramp up H200 production starting in Q2 2026 to address the shortfall.
H200 chips are priced at $27,000 per unit for China-specific variants. Shipments could help recover billions in lost Chinese sales from this year.
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Although Nvidia‘s (NASDAQ:NVDA) shares jumped 38% over the course of 2025, reflecting strong early-year momentum driven by artificial intelligence (AI) demand, the second half of the year was something of a disappointment: The stock largely traded sideways as questions about slowing growth, supply constraints, competitive pressures, and valuation grew. It was the equivalent to investors waking up Christmas morning and finding Nvidia had given them a lump of coal in their stocking.
However, as we prepare to turn the page into 2026, Nvidia may be about to deliver a belated gift to shareholders, one that promises a substantial stock price increase through expanded production and sales. It could be a real present for patient investors, one that brightens the prospects for the year ahead and beyond.
According to an exclusive Reuters report, Nvidia has approached its manufacturing partner, Taiwan Semiconductor Manufacturing (NYSE:TSM), to dramatically increase the output of the H200 AI chips in response to surging demand from Chinese technology companies. Sources say that these firms have placed orders exceeding 2 million H200 units for delivery in 2026, but with Nvidia’s current inventory standing at approximately 700,000 chips, it created a significant shortfall that prompted the outreach to Taiwan Semiconductor.
The H200 is based on Nvidia’s Hopper architecture and produced using Taiwan Semiconductor’s 4-nanometer process. As the second most powerful chip in its portfolio, one that is vastly superior for training complex models than the dumbed down versions Nvidia made to comply with U.S. export restrictions, it also indicates Chinese companies view it as a better option than other regional or locally produced chips.
Nvidia has requested that Taiwan Semiconductor begin fabricating additional chips, with production slated to commence in the second quarter of 2026. While the precise volume of the new order remains undisclosed, this step aims to address the gap between Nvidia’s existing inventory and the incoming orders, giving the chipmaker time to ramp up to meet the demand.