By Nauman Khan
Publication Date: 2026-11-04 19:37:00
This article first appeared on GuruFocus.
Chinese AI developers are facing a gap between planned chip purchases and available supply, with buyers expecting to receive only about 1% of the Nvidia (NVDA) processors they have ordered over the next four months, according to a Wednesday Bloomberg report.
Alibaba Group Holding (BABA), Tencent Holdings (TCEHY), ByteDance and other Chinese AI and cloud companies have collectively ordered about 6 million RTX Pro 5500 chips, the report said, citing people familiar with the matter. Yet the companies expect deliveries to total only tens of thousands of units during the coming four months, leaving most of the requested hardware unavailable.
The shortfall comes as Nvidia works to expand production while demand for its AI-related products continues to outpace available capacity. That imbalance may complicate efforts by Chinese developers to add computing resources on the timetable implied by their orders.
The reported figures represent buyers’ expectations rather than a confirmed shipment schedule from Nvidia. Delivery volumes could depend on how quickly the chipmaker can increase output, and the current estimate covers the next four months only.
