Nvidia Is About to Deliver a Huge Late Christmas Gift to Investors

"Although 's ( NvidiaNASDAQ: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."

"According to an ( exclusive report, Nvidia has approached its manufacturing partner, Taiwan Semiconductor ManufacturingNYSE: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's stock rose 38% during 2025 driven by AI demand but traded sideways in the second half amid concerns about slowing growth, supply constraints, competition, and valuation. Nvidia has asked Taiwan Semiconductor Manufacturing (TSMC) to dramatically increase H200 AI chip output after Chinese technology firms placed orders exceeding two million units for 2026 while existing inventory stands near 700,000 chips, creating a substantial shortfall. The H200 is built on the Hopper architecture using TSMC's 4-nanometer process and is notably superior for training complex models compared with downgraded export-compliant versions. Additional fabrication is slated to start in Q2 2026, though precise volumes remain undisclosed.

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