Nvidia Gains Approval for H200 Chip Sales in China, Potential Revenue of $54 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 24 2026
0mins
Should l Buy NVDA?
Source: Fool
- Market Access Breakthrough: Chinese regulators have instructed major tech firms to submit orders for Nvidia's H200 AI chips for approval, marking a reopening of the Chinese market for Nvidia, potentially leading to substantial revenue gains.
- Massive Order Volume: Nvidia has reportedly received orders for 2 million H200 chips from Chinese customers at a price of $27,000 each, which could generate $54 billion in incremental revenue, despite a 25% export tax deduction.
- Enhanced Profit Outlook: If the import of H200 chips is approved, it is expected to drive Nvidia's annual revenue beyond $50 billion, further enhancing the company's profitability, with analysts projecting fiscal 2027 revenue to reach $320 billion.
- Significant Stock Potential: With $40 billion in incremental revenue and a 56% net profit margin, Nvidia's earnings per share could rise to $8.29, and with a current P/E ratio of about 46, the stock price could potentially reach $385, representing a 105% upside.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
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.
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- Long-Term Investment Opportunities: Despite the current bearish sentiment, analysts suggest that companies like Nvidia and Microsoft, which possess strong earnings potential during the AI supercycle, may present attractive buying opportunities at lower valuations, advising investors to remain cautious and focus on P/E ratios and other valuation metrics.
See More
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