Nvidia Soars to $5.7T Valuation After H200 China Clearances
NVDA•Nvidia’s market valuation hit a record $5.7 trillion as shares rose over 4% following US Commerce Department clearance for 10 Chinese firms—including Alibaba and Tencent—to purchase H200 chips ahead of Q2 earnings. Separately, analysts still favor Nvidia’s deeper AI integration over Sandisk despite Sandisk’s 3,400% rally and 251% YoY growth.
1. Record Valuation and Share Rally
Nvidia’s market capitalization reached a record $5.7 trillion as its shares climbed more than 4%, outpacing the wider tech sector ahead of Q2 earnings. Strong demand for AI chips and positive sector momentum drove the intraday high.
2. China H200 Chip Clearance
The US Commerce Department cleared 10 Chinese companies, including Alibaba, Tencent, ByteDance and JD.com, to purchase Nvidia’s H200 chips, marking a significant step for China sales. No shipments have been completed yet, leaving the scale of future revenue uncertain.
3. Earnings Preview
Nvidia prepares to report Q2 results next week without providing specific guidance on China sales due to ongoing export controls. Investors will watch revenue exposure to China and margin outlook for insights into growth sustainability.
4. Peer Comparison with Sandisk
Despite Sandisk’s 3,400% surge over one year and 251% year-on-year growth driven by memory demand, analysts highlight Nvidia’s stronger AI integration and more stable fundamentals. Both companies trade at similar forward P/E ratios, but Nvidia’s diversified AI offerings carry lower concentration risk.
