Chinese regulators have approved the procurement of Nvidia (NVDA.US) H200 AI chips by three tech giants: BABA-W (09988.HK), TENCENT (00700.HK), and ByteDance, according to foreign media reports.

If the news is confirmed by official sources and the relevant companies, it will have a positive impact on TENCENT, BABA-W, and the overall Chinese internet industry, Citi said in its report.

Particularly, the report highlighted that TENCENT will be the biggest beneficiary as its management mentioned during an earnings call that leasing GPU computing power could be an alternative in the event of direct procurement restrictions. That said, the report also warned that there is a risk of increased capital expenditure in 2026.

Citi's preference for the AI industry: TENCENT > BABA-W > BIDU-SW (09888.HK).
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AAStocks Financial News
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