Trump vowed to impose roughly 100% tariffs on semiconductors unless companies build in the U.S. Is it the latest installment of the “TACO” trade?
Nvidia Corporation is poised for a strong Q2 earnings report, driven by resumed H20 chip shipments to China and robust global demand for AI accelerators. Major deals with international governments and businesses, plus strong partner results, reinforce expectations of continued outperformance and revenue growth. My updated DCF model shows Nvidia remains undervalued, with a fair value of $195.54 per share, reflecting higher revenue assumptions post-China ban lift.
US authorities have charged two Chinese nationals with illegally exporting high-end AI chips to China without the necessary licences. The Department of Justice said Chuan Geng and Shiwei Yang, linked to California-based ALX Solutions, coordinated shipments of advanced Nvidia graphics chips, including the restricted H100 and RTX 4090 models, over the past three years.
DOJ said the defendants illegally exported millions of dollars' worth of advanced chips and other technology to China from October 2022 through July 2025. The illicit shipments included Nvidia's advanced H100 general processing units, according to Reuters, which are the U.S. chipmaker's most advanced chips used in artificial intelligence allocations.
Nvidia rejected Chinese accusations that its data center GPUs for AI include a hardware function that could remotely deactivate the chips, which is commonly called a "kill switch." "NVIDIA GPUs do not and should not have kill switches and backdoors," wrote Nvidia's chief security officer.
Wood's funds bought around $4 million worth of Nvidia stock on Monday.
Shares of NVIDIA Corp. (NASDAQ:NVDA) gained 1.80% over the past five trading sessions, bringing the stock's year-to-date gain to 29.91%.
NVIDIA Corporation NVDA has seen its share price soar 59.3% over the past three months. This surge has significantly outperformed the broader Zacks Computer and Technology sector, which gained 22.7% during the same period.
There's a good chance Nvidia won't become the U.S. stock market's first $5 trillion company.
High net income ratios make NVDA, AVGO and NOW stand out as strong profitability plays for the second half of the year.
Subscribers to Chart of the Week received this commentary on Sunday, August 2.
Louis Gave sees the possibility that the hundreds of billions of dollars invested in artificial intelligence turns out to be a dud as the bigger risk for markets.