Nvidia's China Comeback Sparks Rally In Alibaba, Baidu, Tencent Shares
Chinese technology stocks surged on the Hong Kong Stock Exchange on Wednesday following the U.S. government’s decision to lift certain semiconductor export restrictions to China.
What Happened: The rally followed Nvidia Corp.’s (NASDAQ:NVDA) announcement on Monday that it would resume H20 GPU sales in China and launch a new RTX PRO graphics chip specifically designed for Chinese customers.
CEO Jensen Huang stated the company is submitting applications to restart H20 shipments, with U.S. government assurances that license approvals will be granted.
| Stock on the Hong Kong stock exchange | Price (HKD) | US$ Price | Daily Change |
|---|---|---|---|
| Alibaba Group Holding Ltd. (NYSE:BABA) | 115.40 | $15.00 | +1.67% |
| Tencent Holdings Ltd. (OTC:TCEHY) | 519.00 | $67.47 | +0.29% |
| Baidu Inc. (NASDAQ:BIDU) | 89.15 | $11.59 | +1.65% |
| JD.com Inc. (NASDAQ:JD) | 125.90 | $16.37 | +0.72% |
| Xiaomi Corp. (OTC:XIACY) | 57.70 | $7.50 | +0.087% |
The U.S. had previously imposed broad semiconductor restrictions on China, limiting access to advanced chips from key companies including Nvidia, Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), ASML Holding NV (NASDAQ:ASML), and Micron Technology Inc. (NASDAQ:MU).
These measures, enacted citing national security concerns, aimed to curb China’s technological advancement in critical areas.
Alibaba co-founder Joe Tsai previously stated that China lagged behind the U.S. by approximately two years in AI development, attributing this gap largely to technology restrictions.
The export curbs had limited Chinese firms’ access to advanced chips, hampering Alibaba’s cloud business and computing services capabilities.
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Why It Matters: The semiconductor restrictions had a significant financial impact on U.S. companies. Nvidia booked a $4.5 billion charge in its first quarter as a direct result of the H20 export ban to China, which took effect April 9.
China’s economy expanded 5.2% in the second quarter of 2025, slightly exceeding the 5.1% economists’ forecast but representing a deceleration from the first quarter’s 5.4% rate. The performance keeps Beijing on track to achieve its 5% full-year growth target.
Huang is scheduled to attend China’s International Supply Chain Expo opening ceremony in Beijing on Wednesday, where he may meet with top Chinese officials, including Premier Li Qiang and Vice Premier He Lifeng.
According to the Financial Times, Nvidia plans to debut a China-specific AI chip as early as September, a modified version of the Blackwell RTX Pro 6000 designed to comply with U.S. export regulations.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Robert Way / Shutterstock.com
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