Nvidia Chip Plans Complements Google AI Data Center Growth

Nvidia plans to resume shipments of its H200 AI chips to China by mid-February 2026, with initial volumes expected to be between 5,000 and 10,000 chip modules. This move depends on China's approval and follows a US policy change allowing exports with a 25 percent tariff. US lawmakers, including Senator Elizabeth Warren and Representative Gregory Meeks, have requested transparency from the Commerce Department regarding these potential sales, citing national security concerns. This development occurs as AI stocks continue to drive market gains, with the S&P 500 nearing record highs on December 23, 2025. Global AI spending is experiencing a significant surge, reaching nearly $400 billion in 2025 and projected to hit $530 billion in 2026. This demand is boosting Taiwan's export orders, which jumped 39.5 percent in November to $72.92 billion, largely due to high demand for AI and high-performance computing components. Major tech players are making substantial investments; Alphabet, also known as Google, is acquiring clean energy company Intersect for $4.75 billion to power its growing AI data centers, aiming for 10.8 gigawatts by 2028. ByteDance, owner of TikTok, plans to invest approximately $22 billion in AI infrastructure and chips in 2026, indicating expanding AI investment beyond US giants. Oracle is aggressively building hundreds of data centers globally to meet the high demand from AI developers, currently operating 147 regions with 64 more planned. The company reported a $300 billion order backlog from OpenAI, contributing to its cloud infrastructure revenue soaring by 66 percent to $4.1 billion in fiscal 2026's second quarter. Despite an order backlog exceeding $500 billion, investor concerns persist regarding its conversion to revenue and Oracle's $108 billion debt, which funds its expansion. Applied Digital is also a key player in AI compute power, securing three 15-year lease agreements with CoreWeave worth $11 billion, covering 400 megawatts of data center capacity. In the competitive AI market, an analyst compared Palantir Technologies and Oracle, noting Palantir's strong US revenue growth but slow European expansion. Wall Street analysts generally favor Oracle. Nebius, formerly Yandex, shows rapid growth in cloud-based AI infrastructure, with revenue surging 462 percent to $118 million in 2024, though it operates at a loss. Super Micro Computer, a partner of Nvidia, builds AI-optimized servers but faces increased competition. Lumentum Holdings stock surged due to strong AI and cloud demand, with its fiscal year 2026 revenue growing 58.44 percent. However, SoundHound AI faces profitability challenges, burning $78.7 million in cash in the first nine months of 2025, making its stock expensive despite rising sales. Thomas Ruggie of Destiny Wealth Partners highlights direct investment opportunities in AI, offering earlier access to innovation and potential for higher returns, with private capital crucial for scaling AI innovations.

Key Takeaways

• Nvidia plans to ship 5,000 to 10,000 H200 AI chip modules to China by mid-February 2026, pending Beijing's approval and a 25 percent US tariff.
• US lawmakers are seeking transparency on Nvidia's potential chip sales to China due to national security concerns.
• Global AI spending reached nearly $400 billion in 2025, with forecasts for $530 billion in 2026, driving strong demand for AI stocks.
• Alphabet (Google) is acquiring clean energy company Intersect for $4.75 billion to power its AI data centers, aiming for 10.8 gigawatts by 2028.
• TikTok owner ByteDance plans to invest approximately $22 billion in AI infrastructure and chips in 2026.
• Oracle is rapidly expanding its data center network, with 147 regions running and 64 more planned, and has a reported $300 billion order backlog from OpenAI.
• Oracle's cloud infrastructure revenue grew 66 percent to $4.1 billion in fiscal 2026's second quarter, but the company carries $108 billion in debt.
• Applied Digital secured three 15-year lease agreements with CoreWeave worth $11 billion for 400 megawatts of AI data center capacity.
• Nebius, a cloud-based AI infrastructure provider, saw its revenue surge 462 percent to $118 million in 2024, despite operating at a loss.
• SoundHound AI faces profitability challenges, burning $78.7 million in cash in the first nine months of 2025, making its stock expensive.

Nvidia ships AI chips to China Alphabet buys energy firm

Nvidia plans to ship its H200 AI chips to China by mid-February 2026, with initial volumes of 5,000 to 10,000 chip modules. This plan depends on China's approval and follows a US policy change allowing exports with a 25 percent tariff. Alphabet, also known as Google, announced it will buy clean energy company Intersect for $4.75 billion. This acquisition aims to meet the growing energy needs of its AI data centers. Intersect's projects are expected to generate 10.8 gigawatts by 2028. Meanwhile, US lawmakers like Senator Elizabeth Warren are asking for transparency on Nvidia's chip sales to China due to national security concerns.

Global AI spending surges ByteDance plans huge investment

AI stocks continue to see strong demand as major companies spent nearly $400 billion on AI in 2025, with forecasts for $530 billion in 2026. Taiwan's export orders jumped 39.5 percent in November to $72.92 billion, driven by high demand for AI and high-performance computing. This growth is important as Taiwan houses TSMC, a key chip manufacturer. TikTok owner ByteDance plans to invest about $22 billion in AI infrastructure and chips in 2026, showing AI spending is expanding beyond US giants. Additionally, Goodman and CPP Investments formed a A$14 billion partnership to build data centers in Europe, focusing on Frankfurt, Amsterdam, and Paris.

Nvidia resumes China chip sales Alphabet makes power play

On December 23, 2025, AI stocks led US markets higher, with the S&P 500 nearing record highs. Nvidia is preparing to restart shipments of its H200 AI chips to China before mid-February 2026. The company expects to ship 5,000 to 10,000 chip modules, or 40,000 to 80,000 H200 chips, from current inventory. This move follows a US policy change allowing sales with a 25 percent fee, though Beijing's approval is still pending. Two Democratic lawmakers, Senator Elizabeth Warren and Representative Gregory Meeks, have asked the Commerce Department for details on these potential sales.

Nebius and Supermicro battle for AI stock leadership

Nebius and Super Micro Computer are two distinct AI stock options. Nebius, formerly Yandex, offers cloud-based AI infrastructure services and is expanding its data center network globally. Its revenue surged 462 percent to $118 million in 2024, with analysts expecting $556 million in 2025 and an annualized run rate of $7 billion to $9 billion by late 2026. Supermicro builds AI-optimized servers and partners with Nvidia, but faced past challenges like delayed filings and auditor issues. While Nebius shows rapid growth, it still operates at a loss, whereas Supermicro is dealing with increased competition.

Lumentum stock surges on strong AI cloud demand

Lumentum Holdings stock has significantly increased since October 11, 2025, closing at $324.35 on December 12. This surge is due to strong demand from the AI and cloud sectors. The company's fiscal year 2026 revenue grew by 58.44 percent year over year, exceeding expectations. Its first quarter fiscal year 2026 EBITDA more than doubled, and its debt-to-EBITDA ratio improved from 41.73 to 24.48. Despite ongoing negative free cash flow, increased cash reserves support a positive outlook, leading to a maintained buy rating.

AI analyst compares Palantir and Oracle stocks for 2026

An AI analyst compared Palantir Technologies and Oracle to determine the better AI stock for 2026. The analyst is positive about Palantir's AI potential, highlighting its strong US revenue growth and product adoption. However, Palantir's slow growth in Europe limits its global reach. For Oracle, the analyst is cautious due to its high debt, but sees potential in its cloud and multi-cloud expansion. Wall Street analysts, however, generally prefer Oracle over Palantir. The AI analyst believes Palantir's future upside depends on its US growth, while Oracle's relies on its cloud expansion despite its debt.

Thomas Ruggie discusses direct AI investment opportunities

Thomas Ruggie, Chairman and CEO of Destiny Wealth Partners, discussed the role of direct investment opportunities in the AI revolution in a Forbes.com article. Ruggie explains that direct investments offer earlier access to innovation and potential for higher returns compared to public markets. Evolving deal structures like syndicated investments are making private AI opportunities more accessible. He emphasizes the importance of careful due diligence and portfolio construction for AI investments. Ruggie believes private capital will be crucial for scaling AI innovations and that family offices are well-suited for direct AI investing.

SoundHound AI stock faces profitability challenges

SoundHound AI stock is currently not recommended due to several concerns. The company remains unprofitable, with its expenses rapidly increasing across research and development, sales, and marketing. In the first nine months of 2025, SoundHound AI burned through $78.7 million in cash, showing worsening free cash flow despite rising sales. Although it has $269 million in cash and no debt, its high price-to-sales ratio of 34 makes the stock expensive. Investors are advised to look for more profitable AI companies.

Applied Digital builds AI data centers for future growth

Applied Digital is a key player in building the compute power needed for artificial intelligence. The company has approximately 4 gigawatts of data center capacity and has secured three lease agreements with CoreWeave worth $11 billion over 15 years. These agreements cover 400 megawatts, and Applied Digital's large pipeline suggests it could secure nine more deals of similar size. The company is successfully completing projects on time and within budget, like its 100 MW building at Polaris Forge 1. This strong execution helps Applied Digital gain trust with major tech companies, positioning it ahead of competitors like Iren and Cipher Mining.

Oracle aims for trillion dollar club despite debt concerns

Oracle is rapidly building hundreds of data centers to meet the high demand from artificial intelligence developers. The company currently has 147 data center regions running and 64 more planned, offering powerful GPU clusters. In its fiscal 2026 second quarter, Oracle's cloud infrastructure revenue soared by 66 percent to $4.1 billion. Oracle has an order backlog of over $500 billion, with a reported $300 billion from OpenAI. However, investors are concerned that this large backlog may not fully convert into revenue, and Oracle's stock has dropped 41 percent from its September peak. The company also carries $108 billion in debt, which it uses to fund its data center expansion.

Sources

• AI Stocks Today (Dec. 22, 2025, 5:01): Nvidia’s China Chip Pivot, Alphabet’s $4.75B Energy Deal, and Wall Street’s 2026 AI Forecasts
• AI Stocks Today (Dec. 23, 2025): China’s AI Surge, Big Tech’s Power Grab, and New Red Flags for Nvidia, Alphabet, Amazon and More
• AI Stocks Today (Dec. 23, 2025): Nvidia’s China Chip Path, Alphabet’s Power Play, and the New 2026 AI Trade Playbook
• Better Artificial Intelligence Stock: Nebius vs. Super Micro Computer
• Lumentum Holdings: A Hidden Gem Among AI Stocks (NASDAQ:LITE)
• Palantir (PLTR) vs. Oracle (ORCL): AI Analyst Picks the Best AI Stock for 2026
• Thomas Ruggie, ChFC®, CFP® Discusses the Role of Direct Investment Opportunities in the AI Revolution in Forbes.com Article
• Is SoundHound AI Stock a Buy Now?
• Applied Digital Is Building the Compute Power That AI Needs. Could the Stock Surge Next?
• Could This Be the Next Stock to Join the Likes of Nvidia, Alphabet, and Amazon in the $1 Trillion Club?