Tech

Chip rally extends after Nvidia China approval and strong earnings

Chip stocks rallied after China approved the sale of Nvidia's H200 AI chips to domestic buyers and after ASML and SK Hynix posted stronger-than-expected earnings. The moves point to AI-demand resilience despite ongoing geopolitics, with near-term gains in Nvidia, ASML, SK Hynix and the broader semis space.

📅 January 28, 2026
⏱️ 2 min read
Chip rally extends after Nvidia China approval and strong earnings

Key Takeaways

  • China approved Nvidia H200 AI-chip sales to domestic buyers, signaling potential easing of export controls
  • Nvidia up about 1.6% in premarket trading; ASML and SK Hynix up over 5%; SMH up >3%
  • ASML bookings reach €13.2 billion and 2026 sales forecast tops estimates
  • SK Hynix reports 2025 full-year profit at a record level, lifting stock
  • Memory demand and AI-chips tailwinds support margins and pricing power across the chip supply chain

People Involved

  • No specific individuals mentioned

Entities Involved

  • Nvidia Corp. (NVDA)AI chips and datacenter GPU leader
  • ASML Holding NV (ASML)Semiconductor equipment supplier
  • SK hynix Inc. (000660.KS)Memory chip producer
  • VanEck Semiconductor ETF (SMH)ETF tracking semiconductor stocks
  • ByteDanceChinese tech company; potential H200 buyers
  • Alibaba Group Holding Ltd. (BABA)Chinese tech conglomerate; potential H200 buyers
  • Tencent Holdings Ltd. (TCEHY)Chinese tech conglomerate; potential H200 buyers

MarketMoodz Analysis

The rally reflects near-term upside for AI-hardware suppliers as China-bound demand for Nvidia’s H200 chips aligns with a broader AI-capital expenditure cycle. Strong expectations for ASML’s 2026 sales imply continued investment in lithography gear as foundries expand AI workloads, while SK Hynix’s profit strength points to ongoing margins in memory amid tight supply.

Historically, semiconductor policy has been a source of volatility. Nvidia warned in May 2025 that export restrictions to China could cost about $8 billion in lost sales, underscoring the risk that policy shifts can cap upside and alter revenue mix. The current move could indicate a cautious easing of tensions, but investors should monitor regulatory developments, especially around export controls and national-security reviews.

What to watch next: official confirmation of the H200 export approvals, updates from Nvidia and Chinese regulators, TSMC's earnings as a proxy for broader capex trends, and any shifts in the China demand outlook for AI accelerators.

Source: Original Article

Get AI-Powered Market Insights

Stay ahead of market-moving events with our real-time analysis and stock ratings.

Start Your Free Trial