The chipmaker’s announcement that it will resume sales of its AI processors in China resulted in a significant increase in Nvidia’s stock price on Tuesday.
Nvidia will reportedly resume the sale of its H20 chips in China after the US Government assured the Santa Clara-based company that it would rescind a ban that ultimately halted sales.
Nvidia announced in a blog post published late Monday night that it was applying. The US government “assured Nvidia that licenses will be granted.” The organization “aspires to commence deliveries shortly.” The stock of Nvidia closed at a record high of $164.92 last week. And concluded the trading session on Tuesday at $170.75.
It was recently reported that Nvidia (NVDA) is preparing to introduce a new AI processor, specifically designed for China.” According to reports, Jensen Huang, the Chief Executive of Nvidia, has also visited the country to reiterate the company’s dedication to China.
Introducing a new processor could increase sales in China, leading to a rise in NVDA stock, as the company will also be resuming sales in the region.
Wall Street Responds to News Regarding Nvidia
On Tuesday, Wall Street responded favorably to the news regarding China and the gains of Nvidia.
In a client note, Daniel Ives, an analyst at Wedbush Securities, characterized the removal of the China export restrictions as a “watershed moment” for the US tech industry, the “AI revolution,” and Nvidia.
Concurrently, at least seven Wall Street firms increased the price projections of Nvidia stock. Ben Reitzes, an analyst at Melius Research, has maintained his buy rating on Nvidia stock and increased his price target from 205 to 235.
Reitzes stated in a client note that the return of Nvidia to China following a moratorium in mid-April is a significant tailwind. “We would not be surprised if the $8 billion run rate per quarter in lost China sales were fully recovered by fiscal Q4 2026, given the pent-up demand.
This would increase the overall revenue growth of fiscal 2027 to 38% year over year, following a 59% increase in fiscal 2026.”
In the last five days, NVDA stock has increased by 6.7%, gaining momentum as it approaches the historic $4 trillion market valuation.
Currently, the organization is more than $200 billion clear of Microsoft (MSFT) in second place and more than $800 billion ahead of Apple (AAPL).
Additionally, its stock is trading above its 200-day simple moving average and near the top of its 52-week range.
