Four-star D.A. Davidson analyst Gil Luria said that investors should not worry about Nvidia (NVDA) CEO Jensen Huang missing President Trump’s China trip. Speaking on CNBC, Luria explained that China is still very important for tech giant Apple (AAPL), since it makes up more than 15% of the company’s revenue. However, he said the situation is different for chipmaker Nvidia. In his view, the U.S. is unlikely to allow advanced AI chips or equipment to be sold to China because the two countries are competing directly in AI. Luria also said that Huang does not need to travel with Trump to maintain Nvidia’s ties in China.
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Forget margin or options. Here's how the pros trade NVDAHe called Huang a strong diplomat who already visits China on his own. Even so, Luria does not expect a major positive breakthrough in advanced chip sales, whether Huang is on the trip or not. Trump invited several major U.S. CEOs to join him this week, but Huang was reportedly left off the list because the White House is focusing more on agriculture and commercial aviation during the visit.
The main issue, according to Luria, is that the U.S. and China are not likely to work together in the AI race. He said China has strengths in power, electricity, and talent, while the U.S. has the chips. Because of that, cooperation may be limited to setting rules that prevent direct cyber conflicts between the two countries’ AI models. Taiwan also remains an important risk in the background, especially with Vladimir Putin expected to visit China next week, which could make semiconductor supply chain discussions even more sensitive.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 40 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average Nvidia price target of $276.41 per share implies 26.5% upside potential.
