China Orders $35 Billion of Nvidia Chips as Elice Falls 32%

Wed, Oct 21 ~2 min read ✓ Reviewed by Get AI Decoded Editorial Team

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Two market signals show AI compute demand expanding even as investors turn more selective.

🗄️ Chinese tech groups order more than $35 billion of Nvidia chips

Decoded: ByteDance, Alibaba (BABA) and Tencent (TCEHY) have ordered more than 3 million of Nvidia's (NVDA) new RTX PRO 5500 graphics cards with a collective sticker price above $35 billion, Reuters reported on Oct. 20, citing two people familiar with the matter.

Why it matters: The orders indicate substantial Chinese demand for Nvidia hardware, but sticker value is not the same as recognized revenue. Investors still need to track delivery timing, regulatory constraints and whether the orders are fulfilled at the reported scale.

📉 Elice drops 32% in its Korean market debut

Decoded: Shares of data-center infrastructure company Elice fell 32% in their first trading session, Bloomberg reported on Oct. 20. The decline came as investors questioned whether spending on AI infrastructure can produce returns that justify current capital requirements.

Why it matters: The debut shows that strong demand for compute does not guarantee a supportive valuation for every infrastructure provider. Public-market financing may become more selective, favoring operators with visible utilization, durable contracts and disciplined balance sheets.

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— The Get AI Decoded Team