Nvidia Shares Rise To Start The Week: What's Going On With The AI Chip Stock?

Nvidia Corp (NASDAQ:NVDA) shares are trading higher on Monday. Reports indicate the company plans to start shipping H200 chips to China early next year.

What To Know: Nvidia told clients in China that it expects to begin shipping H200s, its second-most powerful AI chip, to China in mid-February, according to Reuters.

The company reportedly plans to fulfill the first orders using existing chips on hand. Sources familiar with the matter said initial shipments would include 5,000 to 10,000 chip modules, representing around 40,000 to 80,000 H200 chips.

The report indicates that Nvidia is planning to increase its production capacity for H200s and open up new orders in the second quarter next year.

Nvidia has been battling headwinds in China due to chip restrictions imposed by the U.S. government. President Donald Trump said earlier this month that the U.S. would allow Nvidia to export H200 chips to China with a 25% fee.

Nvidia reported third-quarter results last month, topping analyst estimates despite headwinds in China as data center revenue jumped 66% year-over-year to $51.2 billion.

“Blackwell sales are off the charts, and cloud GPUs are sold out. Compute demand keeps accelerating and compounding across training and inference — each growing exponentially,” CEO Jensen Huang said in November.

NVDA Analysis: The move in Nvidia stock to start the week comes as technology stocks are broadly higher, which likely supports Nvidia’s upward momentum.

The broader market is showing strength, with the Nasdaq up 0.59% and the S&P 500 rising 0.45%. This positive trend in major indices indicates a favorable environment for tech stocks.

Nvidia stock is currently trading 2.6% above its 20-day simple moving average (SMA) but is 0.7% below its 50-day SMA, suggesting some short-term volatility. Over the past 12 months, shares have increased 29.58%, suggesting a longer-term bullish trend.

The RSI is at 49.22, which is considered neutral territory, indicating that there currently isn’t strong momentum in either direction. Meanwhile, MACD is below its signal line, indicating bearish pressure, which could temper the early momentum in shares on Monday.

Key support is at $168.50, while resistance is around $196. Traders should keep an eye on these levels, as they will be crucial in determining the stock’s next moves, especially with the current technical setup showing mixed signals.

NVDA Price Action: Nvidia shares were up 1.83% at $184.29 at the time of publication on Monday, according to Benzinga Pro.

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