By Pedro Goncalves
Publication Date: 2025-12-31 09:47:00
Shares in Nvidia fell in pre-market trading on Wednesday despite reports that the chipmaker is scrambling to meet strong demand from Chinese technology groups for its H200 AI chips and has approached TSMC (TSM) to ramp up production.
Chinese technology companies have placed orders for more than 2 million H200 chips for delivery in 2026, while Nvidia currently holds just 700,000 units in stock, according to two people familiar with the matter who spoke to Reuters.
A third source said Nvidia has asked TSMC to begin production of additional chips, with work expected to start in the second quarter of 2026.
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The developments have raised concerns about a further tightening in global supplies of advanced AI chips, as Nvidia seeks to balance strong demand from China with constrained availability in other markets.
They also underscore risks for Nvidia, as Beijing has yet to approve any shipments of H200 chips. The administration of US president Donald Trump only recently cleared the chips for export to China.
Shares in Caterpillar fell ahead of the US opening bell, even as analysts lifted their price target on the stock.
Bernstein raised its price target on Caterpillar to $630 from $557 and maintained a “market perform” rating. Assessing the broader sector, the firm said 2025 had been challenging from a fundamentals perspective. Street estimates fell by…
