$NVIDIA(NVDA.US)
NVIDIA: Is China Slowly Opening the Door?
The NVIDIA-China story may be getting interesting again.
China has reportedly signalled that companies such as Alibaba and ByteDance could be allowed to buy NVIDIA’s new RTX Pro 5500 chips. It is still early days, but I see this as more than just another GPU sale.
For NVDA shareholders, the bigger question is whether this becomes the first crack in the wall that has largely shut NVIDIA out of China’s advanced AI market.
The numbers show what is at stake. NVIDIA generated $215.9 billion in FY2026 revenue, up 65%, with $120.1 billion in net income and $96.6 billion in free cash flow. Data Center revenue alone reached $193.7 billion, up 68%. Yet NVIDIA’s FY2027 outlook assumed no Data Center compute revenue from China.
That makes any reopening potentially meaningful.
But I would not call this a breakthrough yet. The RTX Pro 5500 is not NVIDIA’s flagship AI accelerator, and U.S. export restrictions remain firmly in place. There is still a huge gap between allowing selected products into China and Washington loosening its grip on advanced AI technology.
At around $228.86, NVDA trades at roughly 29x FY2026 earnings. Technically, the picture remains constructive, with the stock above its 50-day and 200-day moving averages and RSI around 59—positive momentum without looking stretched.
For shareholders, the real prize is not the RTX Pro 5500 itself. It is what comes next.
If China gradually regains access to more NVIDIA computing products, the market could be underestimating an additional growth avenue. For now, I see this as a potential opening of the door—not the door being fully opened.
Not financial advice.
