Citigroup: China approves purchase of H200 chips, Tencent (00700) as the biggest beneficiary.

Citigroup released a research report stating that, according to foreign media reports, Chinese regulatory authorities have approved three major technology companies, BABA-W (09988), TENCENT (00700), and ByteDance, to purchase NVIDIA Corporation's (NVDA.US) H200 artificial intelligence chips. Citigroup's report indicated that if the news is officially confirmed by the relevant companies, it will have a positive impact on Tencent, Alibaba Group Holding Limited Sponsored ADR, and the overall Chinese internet industry. The report specifically pointed out that the positive impact on Tencent is the most significant. Previously, Tencent's management had mentioned at an earnings conference that in situations where direct procurement is limited, they may consider using "leasing" GPU computing power as an alternative. Citigroup believes that there may be an increase in capital expenditure risks by 2026. In the artificial intelligence industry, Tencent is viewed favorably followed by Alibaba and BIDU-SW (09888).