Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
Investing.com - Nvidia (NASDAQ:NVDA) stock gained after Citi reiterated its Buy rating and $190.00 price target on the chipmaker. The stock, currently trading near its 52-week high of $167.89, has demonstrated remarkable strength with an 86% revenue growth in the last twelve months. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with 20 additional key insights available to subscribers.
Citi’s decision follows Nvidia’s blog announcement that it is filing applications to sell its H20 GPU in China again, with the U.S. government assuring that licenses will be granted.
Nvidia also revealed plans for a new, fully compliant RTX PRO GPU for the Chinese market, potentially addressing sales impacts that Citi estimates have been in the $4-5 billion range.
The analyst noted that China represents a significant $50 billion market opportunity for Nvidia, though recommended investors take a "wait and see approach" before factoring China contribution into their models.
Citi emphasized that China remains an important market for Nvidia in gaming and networking segments, and selling compute chips in the region would be beneficial for the company.
In other recent news, Nvidia has been in the spotlight with Oppenheimer raising its price target for the company to $200, citing strong growth drivers like generative AI and autonomous vehicles. This development underscores Nvidia’s potential for sustained revenue growth, as highlighted by the research firm. Meanwhile, Nvidia is also navigating international trade dynamics, with Chinese tech giants ByteDance and Tencent (HK:0700) applying to purchase its H20 chips amid U.S. restrictions. The company is awaiting approval from the U.S. government to proceed with these sales, reflecting ongoing tensions in technology transfers between the U.S. and China.
Additionally, Gorilla Technology has announced it is now an official Nvidia solutions provider, leveraging Nvidia’s AI frameworks in its expansion efforts. In related industry news, Huawei is attempting to export AI chips to the Middle East and Southeast Asia, where Nvidia currently holds a dominant position. Vertiv Holdings (NYSE:VRT) Co. retains its Outperform rating at Evercore, with the firm highlighting Vertiv’s role in providing components for AWS’s new liquid cooling solution for Nvidia’s Blackwell platform. These recent developments collectively emphasize Nvidia’s significant role in the global tech landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.