Nvidia stock price target raised to $200 from $160 at Needham on China shipment approval

Investing.com - Needham raised its price target on NVIDIA (NASDAQ:NVDA) to $200.00 from $160.00 on Wednesday, maintaining a Buy rating after the chipmaker received U.S. government approval to ship its H20 products to China. The stock, currently trading near its 52-week high of $172.40, has demonstrated remarkable strength with an 86% revenue growth in the last twelve months. According to InvestingPro analysis, NVIDIA appears overvalued at current levels.

NVIDIA announced that the U.S. government has approved export licenses for its H20 products destined for China, with shipments expected to commence "very soon." Export controls placed on April 9th had previously prevented the company from shipping $2.5 billion of product in the first quarter of fiscal 2026.

The export restrictions had also halted approximately $8 billion of H20 orders scheduled for shipment in the second quarter of fiscal 2026. Needham conservatively models $3 billion of H20 shipments per quarter over the next several quarters.

NVIDIA may also be developing Blackwell GPU variants specifically for the China market, including B30, B40, and RTX 6000D models. These variants are expected to begin shipping in the August/September timeframe.

Needham’s new $200 price target is based on approximately 27.5 times the firm’s calendar year 2027/fiscal year 2028 non-GAAP earnings per share estimate of $7.25.

In other recent news, Nvidia has been the focus of several developments involving its business operations and market outlook. Nvidia CEO Jensen Huang praised China’s artificial intelligence capabilities, describing them as "world-class" and highlighting AI’s role in creating new growth opportunities for China’s supply chain. Meanwhile, the Trump administration’s decision to allow Nvidia to resume AI GPU shipments to China has led Mizuho (NYSE:MFG) to raise its price target for Nvidia to $192.00, identifying this as a significant win for the company, which had previously anticipated an $8 billion revenue impact due to shipment restrictions.

BofA Securities also increased its price target for Nvidia to $220.00, citing potential sales and earnings growth from China shipments of H20 chips and Blackwell equivalents. William Blair reiterated an Outperform rating on Nvidia, noting the potential for an additional $0.30 in earnings per share for fiscal 2026, with $20 billion in China revenue expected for the full year. The firm also mentioned possible gross margin benefits from sales of previously written-off H20 chips.

White House AI adviser David Sacks supported easing restrictions on Nvidia’s H20 chip sales to China, emphasizing the importance of building AI systems on American technology. He acknowledged the potential for addressing security concerns related to chip exports effectively. These developments suggest a renewed focus on Nvidia’s market opportunities in China, amid ongoing discussions about export controls and trade negotiations.

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