NVIDIA Corp. (NASDAQ:NVDA) just got a very large order from China. Reuters reported Tuesday, citing people familiar with the matter, that ByteDance, Alibaba Group Holding Ltd. (NYSE:BABA), and Tencent Holdings Ltd. (OTC:TCEHY) have placed orders worth more than $35 billion for NVIDIA chips.

The order covers more than 3 million RTX PRO 5500 graphics cards, priced at about $11,400 each. That is a lot of silicon.

Demand Is Outrunning Supply

Here is the wrinkle. The RTX PRO 5500 complies with U.S. export rules and is primarily intended for AI inference, which requires less computing power than training advanced AI models. But NVIDIA has warned customers that it may struggle to meet demand. Total Chinese orders have exceeded 6 million cards, while planned global production could be limited to 3 million units in 2027.

Some customers may receive just 5% to 10% of their requested quantities, according to Reuters. That is not a typo. You order a million chips, you might get 50,000.

NVIDIA expects commercial shipments to begin in the first quarter of 2027 as it prioritizes manufacturing capacity for its next-generation Rubin AI platform.

The surge in orders highlights China's growing AI computing needs despite Washington's restrictions on advanced semiconductor exports. NVIDIA CEO Jensen Huang has previously said U.S. export restrictions wiped out the company's once-dominant share of China's AI data center chip market. However, strong demand for the less powerful RTX PRO 5500 suggests NVIDIA still has significant sales opportunities in China despite the curbs, the Reuters report added.

What the Stock Is Doing

NVIDIA stock fell about 0.4% in Tuesday's premarket trading as investors pulled back from technology stocks amid broader market weakness. Nasdaq futures slipped 0.53%, while S&P 500 futures declined 0.11%.

The stock remains under pressure as weaker market sentiment weighs on growth stocks. It is trading below its 20-day and 50-day moving averages, signaling near-term weakness despite its longer-term uptrend.

NVIDIA shares are trading 5.1% below their 20-day simple moving average (SMA) of $227.66 and 3.1% below their 50-day SMA of $222.94. However, the stock remains above its 100-day SMA of $214.51 and 200-day SMA of $203.12, suggesting the broader uptrend remains intact.

Meanwhile, the moving average convergence divergence (MACD) indicator sits below its signal line. The negative histogram also points to weakening bullish momentum. Key resistance stands at $230.50, while support is near $209.

NVIDIA has gained 18.86% over the past 12 months. Its 52-week trading range stands between $164.27 and $243.37.

Analysts Are Still Bullish

NVIDIA carries a consensus Buy rating and an average analyst price forecast of $342.38. Cantor Fitzgerald maintained an Overweight rating with a $350 price forecast on Oct. 1. Rosenblatt maintained a Buy rating with a $390 forecast on Sept. 29. Meanwhile, Piper Sandler initiated coverage with an Overweight rating and a $300 price forecast on Sept. 10.

The stock trades at a price-to-earnings ratio of 27.4.

NVDA Price Action: NVIDIA shares were down 0.32% at $216.40 during premarket trading on Tuesday, according to market data.