Nvidia (NVDA) is closing out the year with a major AI win. ByteDance, the parent company of TikTok, is reportedly targeting a significant increase in AI chip spending in 2026. According to the South China Morning Post, ByteDance expects to spend around ¥100 billion ($14 billion) on Nvidia AI chips in 2026, up from about ¥85 billion in 2025, if Nvidia is permitted to sell its H200 GPUs in China.
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ByteDance Targets Massive AI Investments
The latest spending plan, which may still change, is part of ByteDance’s big push to invest heavily in AI in 2026. The company is seeing growing demand for computing capacity as it expands its apps, cloud services, and large language models.
Meanwhile, ByteDance has also built a chip design team of around 1,000 employees, according to people familiar with the matter. Its in-house chip team has already made progress on a processor that offers similar performance to Nvidia’s China-focused H20 chip, but at a lower cost.
ByteDance, which operates TikTok and Douyin, is also investing in memory technologies such as high-bandwidth memory. Overall, the company plans to raise its total AI spending to around ¥160 billion ($23 billion) in 2026.
Another AI Win for Nvidia
Another AI win is emerging for Nvidia as demand from large global tech companies keeps rising. ByteDance’s plan to spend billions on AI chips shows Nvidia’s key role in supporting large language models, cloud services, and next-generation applications. The move highlights strong global demand for Nvidia’s advanced GPUs and supports the company’s long-term growth outlook as tech giants ramp up AI computing investments.
Notably, Chinese tech companies have shown strong interest in the chip, which is Nvidia’s second-most powerful AI processor.
Interestingly, Reuters previously reported that Nvidia is aiming to deliver its newly approved H200 chips to Chinese customers before the Lunar New Year in mid-February 2026. However, purchases still need approval from Beijing, and the timeline could change depending on regulatory decisions.
Is NVDA a Good Stock to Buy Now?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 39 Buys, one Hold, and one Sell assigned in the last three months. At $262.79, the Nvidia average share price target implies a 40% upside potential.
Overall, NVDA stock is up by over 39% year-to-date.
