Nvidia (NVDA) shares remain in focus on Wednesday after the chipmaker said the U.S. government has offered reassurances that it will soon be able to resume its business in China.
In his press conference today in Beijing, Jensen Huang, the chief executive of NVDA, even said he “hoped to get more advanced chips into China than the H20.”
Nvidia stock has experienced a meteoric rally over the past three months, and is currently up some 80% versus its April low.
Nvidia’s ability to resume sales in China is crucial for its future growth given Huang previously blasted U.S. export restrictions, warning of another $8 billion hit in the company’s July quarter.
In total, China accounted for about $17 billion or as much as 13% of NVDA’s overall sales in its fiscal 2025.
U.S. reassurances and the chief executive’s commitment to selling even more chips to China could, therefore, boost the company’s future earnings and trigger a further increase in its stock price.
In short, easing trade tensions remove a major overhang that’s haunted NVDA shares for months.
According to Needham analyst N. Quinn Bolton, the expected restart of H20 shipments to China and Huang’s recent remarks are reason enough to load up on the AI stock.
On Wednesday, Bolton maintained his “Buy” rating on NVDA stock and raised the price target to $200, indicating potential for another 18% rally from current levels.
Needham’s bullish call on Nvidia shares arrives about a month ahead of its Q2 earnings release. Expectations are for the artificial intelligence firm to earn $0.95 on a per-share basis – sharply above 65 cents it did in the same quarter last year.
What’s also worth mentioning is that Needham is not the only Wall Street firm betting on continued momentum in Nvidia stock despite its monster rally since early April.
According to Barchart, the consensus rating on NVDA shares also currently sits at “Strong Buy,” with the mean target of nearly $178 indicating potential upside of some 5% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
