According to an exclusive report by Reuters, Chinese military entities, AI research institutes, and universities have managed to get their hands on chip giant Nvidia’s (NASDAQ:NVDA) popular AI chips despite an export ban by the U.S.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Reuters’ analysis of tender documents has shown that these Chinese entities have procured the AI chips through small-scale purchases. Furthermore, the analysis has revealed that the suppliers of these chips are not retailers approved by Nvidia or the company itself.
The sale of Nvidia’s A100 and H100 chips continues in China despite being banned since September 2022. Before the ban, Nvidia commanded a 90% market share of AI chips in China. A burgeoning underground market has emerged in China for these chips, which can be acquired through various channels. This includes excess stock and imports sourced through companies incorporated in India, Taiwan, and Singapore.
What is the Target Price for NVDA?
Analysts remain bullish about NVDA stock with a Strong Buy consensus rating based on 31 Buys and four Holds. Over the past year, NVDA stock has skyrocketed by more than 200%, and the average NVDA price target of $662 implies an upside potential of 21% at current levels.
