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

NVDA-0.1%

Source: Fool

Updated: Dec 27 2025

0mins

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.

NVDA

$184.86+Infinity%1D

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

Mizuho

Vijay Rakesh

Outperform

maintain

$245 -> $275

2026-01-09

New

Reason

Mizuho

Vijay Rakesh

Price Target

$245 -> $275

2026-01-09

New

maintain

Outperform

Reason

Mizuho analyst Vijay Rakesh raised the firm's price target on Nvidia to $275 from $245 and keeps an Outperform rating on the shares. The firm adjusted targets in the semiconductors and semiconductor capital equipment group as part of its 2026 outlook. Mizuho sees continued upside for the group in 2026 due to "attractive valuations," but more modest than 2025. The analyst' top sectors in 2026 are AI accelerators and wafter fab equipment, Optical, and memory, while the firm remains cautious on electric vehicles, autos and analog as well as computers and handsets. Mizuho's top picks for 2026 are Nvidia, Lumentum and Broadcom.

BofA

Buy

maintain

$300 -> $390

2026-01-07

New

Reason

BofA

Price Target

$300 -> $390

2026-01-07

New

maintain

Buy

Reason

BofA raised the firm's price target on SanDisk (SNDK) to $390 from $300 and keeps a Buy rating on the shares after Nvidia (NVDA) CEO Jensen Huang presented "Vera Rubin" and co-developed chips that will drive significant improvement in performance for AI workloads at the Consumer Electronics Show in Las Vegas. Part of the performance increase coming from the ability to handle larger context windows for AI models through a dedicated storage tier connected via a Bluefeld-4 chip elevates NAND to a more prominent tier in AI workloads and allows for significant performance improvements, the analyst tells investors. Separately, demand remains strong and pricing robust, which should drive significant positive estimate revisions for SanDisk, the analyst added.

BofA

Buy

maintain

$119

2026-01-06

New

Reason

BofA

Price Target

$119

2026-01-06

New

maintain

Buy

Reason

BofA reiterated a Buy rating and $119 price target on Uber (UBER) stock. The firm continues to see Nvidia's (NVDA) autonomous vehicle initiatives as "critical" for Uber as it helps accelerate the adoption of L4 technology. Uber has a better opportunity to both purchase and lease autonomous vehicles for its network and offer consumers opportunities to monetize their autonomous vehicle on Uber's network, BofA told investors in a research note. Uber's valuation is only two to three turns higher than last year's low of around 12.5 times 2026 free cash flow, according to the firm. BofA added that it sees potential for multiple to expand to over 20 times free cash flow.

Stifel

Buy

maintain

$250

2025-12-29

Reason

Stifel

Price Target

$250

2025-12-29

maintain

Buy

Reason

Stifel keeps a Buy rating on Nvidia with a $250 price target after Groq announced that it has entered into a non-exclusive licensing agreement with Nvidia for its inference technology. While Nvidia did not publicly comment, various reports have cited a $20B strategic transaction value for the licensing agreement and talent acquisition, the analyst tells investors in a research note. Stifel believes Groq's second generation language processing unit will be based on a Samsung 4nm process, which could ramp in conjunction with Nvidia's Vera Rubin rack systems. Integrating the system with Rubin CPX could further stretch Nvidia's artificial intelligence infrastructure leadership as inference workloads continue to evolve, contends the firm.

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.