Bernstein SocGen Group analyst Stacy A. Rasgon is bullish on Nvidia (NVDA), reiterating a Buy rating and a $275 price target as the chipmaker tackles regulatory hurdles and rising AI competition. In a note to investors, the five-star analyst outlined key insights from recent investor meetings, including updates on Nvidia’s H200 shipments to China and how the company positions itself against Google’s (GOOGL) expanding tensor processing unit (TPU) program.
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Uncertainty Clouds Nvidia’s H200 Shipments to China
Rasgon noted that Nvidia is still waiting for formal U.S. government approval to ship its high-end H200 AI accelerators into China. On receiving approval, the company would assess the demand and then begin manufacturing.
Nvidia does have some H200-related inventory, but not all required components. The company is working with suppliers to determine a realistic production timeline once licenses are granted.
Adding to the uncertainty, Nvidia has not yet received formal guidance on the proposed 25% U.S. government revenue share tied to certain China-related sales, leaving the accounting impact unclear.
Nvidia Claims Lead over Google’s TPU Program
Rasgon mentioned that the company believes it is roughly two years ahead of Google’s TPU program despite acknowledging Google’s progress over the past 10 years.
Because AI models keep changing quickly, Nvidia argues it will be hard for Google to get cloud providers to adopt TPUs, which are built for more specific model types. By contrast, Nvidia believes its more flexible, programmable platform is still the strongest option for large-scale cloud AI infrastructure.
Is NVDA a Strong Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 39 Buys, one Hold, and one Sell assigned in the past three months. Further, the average Nvidia price target of $258.97 per share implies 47.05% upside potential.
