Nvidia (NVDA) has recently made headlines with reports indicating the company’s plans to resume its business in China. According to a Reuters report, Nvidia has placed an order with Taiwan Semiconductor (TSM) for approximately 300,000 of its H20 AI chips in anticipation of the pent-up demand in the Chinese market. This move comes after Nvidia built up an inventory of around 700,000 chips following reassurances from the Trump administration that it would soon be able to serve its Chinese customers again.
The decision to resume business in China is significant for Nvidia as the country accounts for roughly 13% of its overall revenue. With increasing demand from tech giants like Tencent and Alibaba, being able to serve this market again could potentially unlock billions in sales for the company. Additionally, renewed access to China will help Nvidia avoid further inventory write-downs and defend its market share against domestic competitors like Huawei.
The recent order placed with TSMC suggests that Nvidia is gearing up to start shipping its H20 chips to Beijing, a move that is seen as a bullish signal for the company’s stock price. Analysts believe that resuming business with customers in Beijing could lead to significant further upside in Nvidia’s stock over time.
Truist analyst William Stein remains optimistic about Nvidia’s prospects and sees potential for further upside in NVDA shares in the second half of 2025. Stein reiterated his “Buy” rating on Nvidia stock in July, citing the company’s full-stack advantage in chips, software, and pre-trained models. He also expects Nvidia to launch a client-side CPU by the end of the year, unlocking an estimated $35 billion in new total addressable market.
Despite the explosive returns seen in the past few months, Nvidia’s dominance in the AI market continues to keep Wall Street firms bullish on the stock. According to Barchart, the consensus rating on Nvidia shares remains at “Strong Buy,” with a mean target of about $182 indicating potential upside of another 4% from current levels.
In conclusion, Nvidia’s decision to resume business in China is a positive development that could lead to significant growth opportunities for the company. With analysts predicting further upside in NVDA shares and a strong consensus rating from Wall Street, investors may want to keep an eye on Nvidia as it continues to make strides in the AI market.
