China Poised to Approve Nvidia H200 Chip Imports, Potential Revenue of $54 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10h ago
0mins
Source: NASDAQ.COM
- Market Reentry: After nearly a year of uncertainty, the Chinese government is poised to approve the import of Nvidia's H200 AI chips, marking a significant reentry into a crucial market that could lead to substantial revenue growth for the company.
- Surge in Orders: Nvidia has secured orders for over 2 million H200 chips from Chinese customers, which, at $27,000 each, could generate approximately $54 billion in additional revenue, significantly enhancing its financial performance.
- Profit Potential: After accounting for a 25% export tax, Nvidia anticipates netting over $40 billion from these orders, which would greatly elevate its future earnings outlook, potentially driving earnings per share to $8.29.
- Stock Price Expectations: Analysts predict that Nvidia's stock price could potentially double to around $380 due to this market opportunity, reflecting strong demand in China and the company's future growth potential.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 255.63 USD with a low forecast of 185.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
40 Analyst Rating
38 Buy
1 Hold
1 Sell
Strong Buy
Current: 185.040
Low
185.00
Averages
255.63
High
352.00
Current: 185.040
Low
185.00
Averages
255.63
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
