Nvidia’s (NVDA) CEO Jensen Huang is planning a trip to China in late January to reopen this key market for the semiconductor company’s artificial intelligence (AI) chips, Bloomberg reported. Huang’s China visit, which he generally makes around the Lunar New Year holidays, comes at a crucial time, given the uncertainty around Nvidia’s chip exports.
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NVDA CEO Eyes Growth in China
Nvidia’s CEO will be attending company parties and is also expected to visit Beijing, though it is still not clear if he will meet senior Chinese officials.
The Trump administration recently eased export restrictions by allowing Nvidia to sell its H200 chips to China in return for a 25% cut on such sales. Washington has also imposed additional conditions on H200 exports, including an assurance that production of these chips won’t affect the capacity to manufacture chips for the domestic market.
Despite the Trump administration’s approval, Nvidia’s exports to China remain uncertain, given the reluctance of Chinese authorities amid ongoing trade tensions with the U.S. Following the Trump administration’s approval, Reuters reported that Chinese customs authorities told customs agents not to permit H200 AI chips to enter the country.
Additionally, citing sources, Bloomberg reported that China will prohibit the use of H200 chips by the military, sensitive government agencies, critical infrastructure, and state-owned enterprises due to security reasons. Moreover, China is encouraging the domestic manufacturing of AI chips to reduce dependence on U.S. tech giants.
Is NVDA Stock a Good Buy Now?
Despite uncertainty around China sales, Wall Street remains bullish on Nvidia stock, driven by solid demand for the company’s AI GPUs (graphics processing units) and continued innovation, as reflected in the Blackwell and Rubin platforms.
The Strong Buy consensus rating on Nvidia stock is based on 39 Buys, one Hold, and one Sell recommendation. The average NVDA stock price target of $263.44 indicates about 48% upside potential.
