Nvidia finally won President Donald Trump's approval to sell its H200 AI chips in China, but will it be able to seal the deal?
Shares of NVIDIA Corp. (NASDAQ:NVDA) gained 4.35% over the past five trading sessions after losing 4.95% the five prior.
NVDA stands out among S&P 500 stocks as a top profitability pick, boasting a 53% net income ratio that highlights its strong bottom-line performance.
"We're heading above 7,000" in the SPX, says Mark Gibbens. He points to improving fundamentals and a return of A.I.
Nvidia Corp (NASDAQ:NVDA) may not have been the best stock on the Dow Jones Industrial Average (DJI) in 2025, but it sure has maintained its popularity in the options pits.
The mean of analysts' price targets for Nvidia (NVDA) points to a 41.2% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.
Nvidia is set to pay its next quarterly dividend this week, as the chipmaker's shares climb in premarket trading on renewed optimism around AI chip shipments to China.
NVDA's surging AI data center revenues and faster earnings growth outshine peers, positioning the stock as the stronger buy over rivals right now.
Nvidia has told Chinese clients it aims to start shipping its second-most powerful AI chips to China before the Lunar New Year holiday in mid-February, three people familiar with the matter told Reuters.
Nvidia is rated a strong buy, driven by its dominant AI infrastructure position and accelerating GPU architectures amid the end of Moore's Law. NVDA's revenue momentum is underpinned by a $0.5 trillion Blackwell/Rubin pipeline, robust hyperscaler demand, and a projected 40% long-term CAGR. Key risks include China export controls, power constraints, customer concentration, and potential re-rating if open-source AI or custom silicon erode demand.
Valuation still reasonable: Nvidia trades at ~24x forward earnings. That's only ~3% above the S&P 500 average, despite vastly superior revenue, EPS growth, and margins. Fundamentals remain exceptional: 12 straight earnings double-beats, ~65% YoY data-center growth, and ~74% gross margins underscore dominant execution. Concentration isn't market peak: Heavy weighting in the Magnificent 7 suggests the bull market hasn't broadened yet, leaving room for further upside if recession is avoided.
‘The exports will relinquish our lead in frontier AI models while actively supporting China's military and economic advancement,' writes Dmitri Alperovitch.