Nvidia (NVDA) stock continued climbing on Thursday, hitting fresh all-time highs above $227 after reports that the U.S. government approved sales of Nvidia’s H200 AI chips to several Chinese tech companies. Strong results from Foxconn, one of Nvidia’s key AI server partners, also added to optimism around AI demand ahead of NVDA’s upcoming Q1 earnings report. Notably, NVDA stock has gained 21% year-to-date and 67% over the past year.
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Trade NVDA with leverageChina Chip News Boosts Sentiment
One major reason behind the latest rally was a Reuters report stating that the U.S. government has approved sales of Nvidia’s H200 AI chips to around 10 Chinese tech companies, including Alibaba (BABA), Tencent (TCEHY), ByteDance, and JD.com (JD).
The report raised hopes that Nvidia could slowly regain access to the China AI chip market after U.S. export restrictions reduced its business in the region.
Markets are closely watching the talks for signs of easing tensions around AI chips and semiconductor trade.
Foxconn Results Add to AI Optimism
At the same time, strong quarterly results from Foxconn also added support to the AI demand story. The company reported first-quarter net profit of NT$49.92 billion, up 19% year-over-year and above estimates of NT$48.88 billion.
Foxconn also maintained its outlook for strong AI server revenue growth this year, signaling that demand for Nvidia-powered AI infrastructure remains strong.
Analysts Turn More Bullish on Nvidia
Investors are also buying Nvidia stock ahead of its Q1 earnings report on May 20, with many expecting another strong quarter driven by demand for Blackwell AI systems. Several analysts have raised their price targets on the stock ahead of the results.
Recently, BofA Securities analyst Vivek Arya raised his price target on Nvidia stock to $320 from $300 while maintaining a Buy rating. The analyst cited strong AI demand and upcoming catalysts, including Nvidia’s earnings report and the launch of its Vera Rubin platform later this year. Arya also raised his long-term sales and earnings forecasts but noted that rising memory costs and growing competition from Advanced Micro Devices (AMD) and custom AI chips could pressure margins over time.
Is Nvidia Stock a Good Buy?
Wall Street analysts maintain a Strong Buy rating on NVDA stock, with 40 Buys, one Hold, and one Sell assigned in the last three months. At $277.23, Nvidia’s average 12-month stock price target implies an upside of over 22% from the current level.
