Local Chinese media reported on Thursday that chip giant Nvidia (NASDAQ:NVDA) could be planning to unveil three new chips that would cater to the Chinese market. According to Reuters, which cited these reports, Nvidia could announce these chips, the HGX H20, L20 PCIe, and L2 PCIe as soon as next week.
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This news comes amid heightened geopolitical tensions between the U.S. and China, This has led to the U.S. banning Nvidia from selling high-end artificial intelligence (AI) and one of its gaming chips to Chinese companies.
Nvidia has been a frontrunner when it comes to the AI chips market in China, commanding 90% of the market share. The ban on its chips has led to many Chinese companies like Baidu (BIDU) exploring local alternatives. Recently, Baidu placed an order for 1,600 of Huawei Technologies’ 910B Ascend AI chips.
What is the Target Price for NVDA?
Analysts are bullish about NVDA stock with a Strong Buy consensus rating based on 37 Buys and one Hold. The average NVDA price target of $645.65 implies an upside potential of 35.5% at current levels.
