Nvidia's Price Target Raised to $200 Amid Hope for Resuming H20 Chip Sales to China

Nvidia's price target has been raised to $200 from $160 by Needham after the company announced plans to resume sales of its H20 chips to China. This follows assurances from the U.S. government that export licenses will be granted.

Nvidia Corp. has seen its stock price target raised to $200 from $160 by Needham, following the company's announcement of plans to resume sales of its H20 chips to China. This move comes after the U.S. government assured Nvidia that export licenses will be granted, a significant development that could boost the company's revenue and market share in the Chinese market.

The H20 GPU was previously banned by the Trump administration in April due to national security concerns. However, the recent agreement between Nvidia and the U.S. government marks a significant shift in export policies, allowing Nvidia to restart shipments to China. The company expects to commence deliveries "very soon" [1].

Needham's new price target of $200 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. 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.

The resumption of H20 chip sales to China is part of a broader thawing of relations between Washington and Beijing, guided by an opaque trade truce. This development underscores the ongoing shift in U.S. export policies and the broader geopolitical dynamics shaping the global semiconductor industry.

Other notable developments include AMD securing export licenses for its GPU shipments to China and Apple reportedly in talks to acquire MP's chip manufacturing business. Google has also signed a deal to supply hydroelectric power to its data centers, signaling a commitment to sustainable energy practices [2].

References:
[1] https://www.cnbc.com/2025/07/15/nvidia-says-us-government-will-allow-it-to-resume-h20-ai-chip-sales-to-china.html
[2] https://www.ainvest.com/news/nvidia-seeks-export-licenses-china-resumes-h20-gpu-shipments-2507-53/