Nvidia Corp (NVDA) could see more gains in the months ahead, according to a new note from Wells Fargo’s top analyst, Aaron Rakers. The bank raised its price target on the stock to $220 from $185 and kept its overweight rating. The latest target points to about 20% potential upside from Friday’s close.
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Nvidia shares have climbed over 48% over the past three months and are up 36% since the start of the year, with the much-anticipated Q2 2026 earnings call expected on August 27.
China Deal and Global Trade Trends Signal Revenue Boost
The move comes after the Financial Times reported that Nvidia and Advanced Micro Devices (AMD) reached an agreement with the U.S. government. The deal will allow both companies to resume selling certain artificial intelligence chips in China in exchange for giving the government 15% of the revenue from those sales. For Nvidia, the chips in focus are its H20 models, while for AMD, the models are MI308 chips.
Rakers said the new arrangement could help Nvidia recover the full $8 billion in quarterly revenue that was at risk from the earlier China restrictions. The analyst expects this recovery to be complete by the company’s fiscal fourth quarter in January 2026. He also sees demand from China growing further after that point.
In addition, Rakers pointed to recent trade data that supports a stronger outlook for the sector. U.S. imports of automated data processing machines rose in June, while Taiwanese exports of the same category rose in July. These trends often align with higher demand for servers and related technology used in artificial intelligence. To conclude, Wells Fargo believes the combination of renewed China sales and strong global demand could help push the stock toward its higher target.
Meanwhile, Bernstein’s five-star analyst Stacy Rasgon maintained a Buy rating on Nvidia today and set a price target of $185.00.
Is NVDA Stock a Buy?
Based on 38 assigned ratings, Nvidia continues to boast a Strong Buy consensus and an average NVDA stock price target of $186.24. This implies a 1.94% upside from the current price.
