Nvidia’s Big 2026 Move: Is Now the Time to Buy?

Nvidia(NASDAQ: NVDA)delivered an exceptional performance during the last two years, with the stock increasing by over 200% during this period. This success is due to the company’s strong presence in the artificial intelligence (AI) market, which is expected to grow into the trillions of dollars within a few years. Nvidia’s leadership in AI chips and associated products and services has contributed to record-breaking earnings.

However, a single issue troubled Nvidia for much of 2025, which was the sale of chips to China. The United States had imposed stricter export restrictions on chips to this nation, leading Nvidia to announce a one-billion-dollar charge earlier in the year for chips it was unable to sell. Jensen Huang, CEO of Nvidia, believes that China’s AI chip market could be worth hundreds of billions of dollars by the end of the decade, making it a crucial market for chip manufacturers.

A few weeks back, President Donald Trump approved Nvidia’s sale of its H200 chip to China — and more recently, Nvidia has taken another step that might have significant implications for 2026. Let’s take a look and see if this is a good time to invest in the stock.

Restrictions on AI chip exports

First, some additional context on the Nvidia-China situation. The U.S. imposed restrictions on exports to that country and other nations for security purposes in 2022. In reaction to this, Nvidia developed the H20 chip to comply with regulations and successfully sold it in China. During the full fiscal year 2025, sales to China accounted for 13% of Nvidia’s total revenue.overall revenue.

However, last year, as previously noted, the U.S. stopped selling even the H20 model, preventing Nvidia and other American chip designers from accessing the Chinese market.

In the meantime, Nvidia kept posting strong growth, indicating that the company could still achieve success even without sales in China.an AI winfor investors. In the most recent quarter, for instance, Nvidia’s revenue increased by 62% to $57 billion due to robust demand for its Blackwell platform. Additionally, Nvidia remained profitable on its sales, sustaininggross marginOver 70%. Nevertheless, the outlook might have been even more positive if Nvidia had been able to reach customers in China.

Trump’s big announcement

A few weeks ago, Trump stated that Nvidia could re-enter the Chinese market — this time with the H200, which is more advanced than the H20 but not as powerful as Nvidia’s Blackwell chips. As part of the agreement, Nvidia is required to provide 25% of its chip sales in China to the U.S.

Now, let’s examine the recent action that Nvidia is said to have taken. According to Reuters, citing sources who are aware of the matter, Nvidia has stated its intention to start delivering H200 chips to China using current inventory by mid-next month. Nvidia has also requestedTaiwan Semiconductor Manufacturing, the manufacturer of its chips, to boost output as orders for two million H200s have been placed for 2026, according to the news agency.

This is great news, but certain risks still exist. China has not yet officially authorized the entry of H200s into the country — any delay or obstacle in this process could cause issues, particularly if Nvidia begins increasing its production. Nvidia also has the challenging task of maintaining robust production to meet demand for its newer Blackwell platform in the U.S. and other regions, while simultaneously producing enough H200s for Chinese clients.

Reason to be optimistic

Nevertheless, when Trump announced the relaxation of export restrictions, he also mentioned that China’s reaction was favorable—therefore, there is grounds for hope regarding Nvidia’s re-entry into the market. Regarding production, Nvidia has a history of successful product releases and has effectively managed the manufacturing of previous systems as well. Moreover, it’s improbable that Nvidia would significantly increase H200 production without assurance that its orders can be delivered.

So, does this potential business opportunity in China make Nvidia a good purchase today? I wouldn’t invest in Nvidia solely because of this, but increased sales in China would certainly be beneficial.a great step forwardin 2026. The motivation for purchasing the stock stems from the company’s broad potential within the global artificial intelligence sector. Nvidia holds a leading position in AI chips, and this dominance is expected to persist because of its commitment to innovation and robust financial position. Additionally, the demand from AI clients continues to be significant.

These three components form Nvidiaa fantastic buy– and the possibility of a return to the Chinese market in 2026 is an added bonus.

Adria Ciminodoes not hold any position in the stocks mentioned. The Motley Fool holds positions in and recommends Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has adisclosure policy.