Despite U.S. export controls, chipmaker Nvidia (NASDAQ:NVDA) is set to sell $12 billion worth of AI chips in China this year. In fact, the company will deliver over 1 million of its new H20 chips, which are priced between $12,000 and $13,000 each and have been designed to bypass U.S. restrictions on selling AI processors to China. According to SemiAnalysis, this number is nearly double what Huawei is expected to sell of its rival chip, the Ascend 910B.
However, it’s worth noting that NVDA has been seeing a lot more competition in China due to these restrictions, as the Biden administration aims to limit China’s access to powerful chips. Nevertheless, Nvidia’s new H20 chip is proving to be popular in China, with analysts expecting strong demand. Indeed, the $12 billion the company is set to make is greater than the $10.3 billion it made from its entire China business in its previous fiscal year.
Investor Sentiment for NVDA Stock
The sentiment among TipRanks investors is currently very positive. Out of the 743,899 portfolios tracked by TipRanks, 19.6% hold NVDA stock. In addition, the average portfolio weighting allocated towards NVDA among those who do have a position is 13.47%. This suggests that investors of the company are extremely confident about its future.
Furthermore, in the last 30 days, 7.1% of those holding the stock increased their positions. As a result, the stock’s sentiment is above the sector average, as demonstrated in the following image:
Is NVDA Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 41 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 203% rally in its share price over the past year, the average NVDA price target of $135.81 per share implies 5.87% upside potential.
