Shares in Nvidia (NVDA) stock soared on Tuesday following the chipmaker’s announcement that it will resume sales of its AI chips in China. Indeed, Nvidia will reportedly return to selling its H20 chips in China after the US Government assured the Santa Clara-based company it would lift a ban that ended up halting sales.
In a blog post late Monday night, Nvidia said it was filing the application, and the US government “assured Nvidia that licenses will be granted.” The company said that it “hopes to start deliveries soon.” Nvidia stock closed at a record high of $164.92 last week. and ended Tuesday’s trading session at $170.75.
Last week, it was reported that Nvidia (NVDA) is planning to launch a new AI chip “specifically for China.” The company’s Chief Executive, Jensen Huang, has also reportedly visited the country to reassert Nvidia’s commitment to China. Now that it will also be resuming sales in the region, the arrival of a brand new chip could bolster sales in China, sending NVDA stock higher.
Wall Street Responds to News Around Nvidia (NVDA)
Wall Street responded positively to Nvidia’s gains and China news on Tuesday. Removal of the China export restrictions is a “watershed moment” for Nvidia, the “AI revolution” and the U.S. tech industry, Wedbush Securities analyst Daniel Ives said in a client note. Correspondingly, at least seven Wall Street firms raised their price targets on Nvidia stock. Melius Research analyst Ben Reitzes reiterated his buy rating on Nvidia stock and upped his price target to 235 from 205.
“Nvidia getting back in China after a mid-April ban is a huge tailwind,” Reitzes said in a client note. “We wouldn’t be surprised if all or most of the $8 billion run rate per quarter in lost China sales came back completely by fiscal Q4 2026, given pent-up demand, and boosted fiscal 2027 overall revenue growth to 38% year over year after 59% growth in fiscal 2026.”
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NVDA stock is up 6.7% in the last five days, picking up steam en route to the historic $4 trillion market cap. The company now sits over $200 billion ahead of second-place Microsoft (MSFT) and over $800 billion ahead of Apple (AAPL). Its stock is also trading near the top of its 52-week range and above its 200-day simple moving average.