Nvidia (NVDA) has ramped up its presence in China this year. The company is strengthening its research capabilities and focusing on innovative autonomous driving technologies, according to an exclusive Bloomberg report. By the end of this year, the tech giant will have around 4,000 employees in China, up from around 3,000 at the beginning of the year, according to the report.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
NVDA Has Forayed into Autonomous Driving
As part of this growth, Nvidia has added about 200 researchers to its Beijing team, specifically to advance self-driving technologies. Additionally, it has expanded its after-sales service and networking software development teams. Despite U.S. trade restrictions limiting Nvidia’s ability to sell its most advanced chips in China, the country remains an important market and research hub for the chip giant, generating $5.4 billion in sales during the September quarter alone.
Nvidia has been developing autonomous driving and AI software for over a decade. Its China-based researchers are positioned to collaborate with local automakers seeking to integrate advanced technologies into their vehicles.
China Is an Important Market for NVDA
China is an important market for the chip giant and a key research hub. However, Chinese regulators recently opened an antitrust investigation into Nvidia’s 2020 Mellanox acquisition. This scrutiny highlights the delicate balance Nvidia must maintain between its U.S. operations and its presence in China.
The company has nearly 600 employees in Beijing and a new office in the Zhongguancun tech hub, reflecting its expanding footprint in the country.
What Is the NVDA Price Target?
Analysts remain bullish about NVDA stock, with a Strong Buy consensus rating based on 37 Buys and three Holds. Year-to-date, NVDA has surged by more than 100%, and the average NVDA price target of $176.14 implies an upside potential of 26.4% from current levels.
