Shares of Nvidia (NVDA) are rising in pre-market trading on Monday. This jump came after reports said the chipmaker is looking into whether it can boost production of its H200 AI chips, as demand from China has turned out to be much stronger than expected. NVDA shares are up about 1% in pre-market trading but remain down more than 6% over the past month.
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Overall, Nvidia stock has been in the spotlight after Trump earlier this month approved conditional exports of its high-performance H200 AI chips to select Chinese customers, subject to a 25% fee.
What Lies Ahead for Nvidia?
The latest approval by the Trump administration unexpectedly gave Chinese companies access to the H200 chip, which is far more powerful than the previously approved H20. For many Chinese firms, the H200 is now the most advanced chip they can legally buy.
According to a Reuters report, China’s chip demand is so strong that current production can’t keep up, prompting Nvidia to explore whether it can free up more capacity at chipmaker TSMC (TSM). Nvidia has also stressed that any increase in shipments to China must not come at the expense of customers in the U.S. or other markets.
However, shipments to China are not guaranteed. Chinese regulators have not yet formally approved imports of the H200 chip, and sources say officials are holding urgent discussions to review its potential impact.
What It Means for NVDA Stock
NVDA stock could see a boost from strong demand in China if H200 shipments are approved, but uncertainty around regulatory clearance keeps the upside cautious. Any additional production would need to balance U.S. and global customer needs, making near-term gains in the stock dependent on how quickly Nvidia can meet both domestic and Chinese demand.
For NVDA investors, the situation creates uncertainty. China is a major market that could either accelerate or slow Nvidia’s growth, particularly in data-center and AI sales. Stricter limits could give rivals more room in China and weigh on long-term revenue, while relaxed rules could boost demand and improve NVDA stock’s outlook.
Is NVDA a Good Stock to Buy Now?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 39 Buys, one Hold, and one Sell assigned in the last three months. At $258.45, the Nvidia average share price target implies a 47.7% upside potential.
