Nvidia Gains Approval to Sell H200 Chips in China, Projected Q1 Revenue Up to $2.56 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 27 2025
0mins
Should l Buy NVDA?
Source: Fool
- Market Re-entry: Nvidia has received approval to sell H200 data center GPUs to Chinese customers, with shipments expected to begin before mid-February 2026, initially delivering between 40,000 and 80,000 chips, which could generate $1.28 billion to $2.56 billion in Q1 revenue, marking a significant return to a previously restricted market and enhancing its competitive position in the global semiconductor industry.
- Production Capacity Boost: Nvidia plans to start taking orders for additional production capacity for Chinese customers in Q2 2026, indicating strong confidence in the demand for H200 processors in China, which is expected to further drive revenue growth.
- Market Potential: The H200 processor is six times more powerful than the previously sold H20 processor, attracting interest from Chinese tech giants like Alibaba, ByteDance, and Tencent, highlighting robust market demand and growth potential.
- Financial Outlook: Analysts project Nvidia's earnings per share to rise from $4.69 to $7.52 in 2026, a 60% increase, with potential further upward revisions due to additional business from the Chinese market, signaling strong future financial performance.
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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 264.97 USD with a low forecast of 200.00 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.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
Current: 171.880
Low
200.00
Averages
264.97
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.
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