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Investing.com - Mizuho (NYSE:MFG) has raised its price target on Nvidia (NASDAQ:NVDA) to $192.00 from $185.00 while maintaining an Outperform rating following the Trump administration’s announcement regarding AI GPU shipments to China. The semiconductor giant, currently trading at $170.65 with a market capitalization of $4.17 trillion, has demonstrated remarkable growth with revenue surging 86% year-over-year according to InvestingPro data.
The Trump administration has decided to allow Nvidia and other AI accelerator providers to resume AI GPU shipments into China as part of ongoing trade negotiations, according to Mizuho.
Mizuho identified this development as a significant win for Nvidia, which had previously expected an $8 billion revenue impact in the July quarter due to shipment restrictions. The company may also benefit from an upcoming Blackwell project designed to meet U.S. requirements for shipments to China later this year.
Key Chinese customers ByteDance and Tencent (HK:0700) are already applying for licenses to receive Nvidia’s H20 chips, indicating early momentum from the policy change, Mizuho noted.
The firm also raised price targets for AMD (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO) as U.S. companies regain access to what Mizuho estimates is a $50 billion market, with AMD now able to resume MI308 shipments to China and Broadcom potentially reviving ASIC development for ByteDance.
In other recent news, Nvidia has been in the spotlight due to several key developments. BofA Securities raised its price target for Nvidia to $220, highlighting potential sales and earnings growth from China, particularly in relation to shipments of H20 chips. The firm anticipates these shipments could contribute significantly to Nvidia’s earnings in the coming years. Meanwhile, William Blair reiterated its Outperform rating on Nvidia, citing potential earnings upside from renewed access to the China market, which is expected to generate substantial revenue for the company. Nvidia is seeking to resume sales of its H20 GPUs to China, with assurances from U.S. officials that licenses will be granted, unlocking about $10 billion in near-term revenue opportunities. This move follows Nvidia’s previous write-downs related to H20 restrictions. Citi also reiterated its Buy rating, noting the potential of Nvidia’s new RTX PRO GPU for the Chinese market. The White House’s AI adviser, David Sacks, has expressed support for boosting U.S. exports, addressing Nvidia’s case for easing export restrictions on its H20 chips. These developments underscore the importance of the Chinese market for Nvidia’s future growth prospects.
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