Nvidia (NVDA) Shares Rise as China Approves Limited H200 GPU Purchases
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: seekingalpha
- Positive Market Reaction: Nvidia shares rose nearly 2% in midday trading, reflecting investor optimism regarding the Chinese government's approval for select tech companies to purchase H200 GPUs under specific circumstances, indicating potential future sales growth.
- Policy Uncertainty: The Chinese government informed local companies that H200 AI accelerators could be purchased if deemed “necessary,” yet failed to clarify what “necessary” entails, creating concerns about future policy implications that could affect corporate decisions.
- Future Meetings Scheduled: Additional meetings between the Chinese government and tech companies are expected to further discuss H200 GPU purchases, potentially providing opportunities for policy clarification that could influence Nvidia's sales strategy moving forward.
- Strong Demand: Nvidia CEO Jensen Huang noted that demand for H200 chips remains robust, despite the Chinese government's earlier directive for some tech firms to halt orders, suggesting a persistent long-term growth potential for these advanced AI chips.
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: 184.940
Low
185.00
Averages
255.63
High
352.00
Current: 184.940
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.
