Shares of chipmaker Nvidia (NVDA) turned positive on Friday after Bloomberg reported that the Trump Administration is thinking about allowing sales of its H200 AI chips to China. These talks are still in the early stages, and nothing has been officially decided yet. Unsurprisingly, Nvidia has previously stated that U.S. rules currently block it from selling competitive data center chips in China, which opens the door for foreign rivals to take over that large market.
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Still, this doesn’t affect its ability to serve customers in the United States. Interestingly, earlier this year, Nvidia got permission to sell a reduced-performance chip, the H20, to China. However, it didn’t report any H20 revenue from China in the last quarter, though it did sell some inventory to a customer outside China. China, on the other hand, has been moving away from using foreign AI chips.
In fact, it banned non-Chinese AI chips in government-backed data centers earlier this month and previously told local firms to stop buying Nvidia GPUs. Despite growing tensions, President Trump said in October that he did not discuss Nvidia’s most advanced Blackwell AI chips during his meeting with Chinese President Xi Jinping.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 37 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 $257.33 per share implies 30.7% upside potential.
