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Nvidia (NVDA) shares remain in focus following a Reuters report that the company is warming up to resume its business in China.
NVDA has placed an order with Taiwan Semiconductor (TSM) for some 300,000 of its H20 AI chips to meet the anticipated pent-up demand that’s about to be unlocked in China.
Nvidia has already built an inventory of up to 700,000 chips following President Donald Trump’s administration’s reassurances that it will soon be able to serve its Chinese customers again.
NVDA stock is currently up more than 100% versus its year-to-date low.
Renewed Access to China Is a Huge Positive for Nvidia Stock
The aforementioned order placed with TSMC suggests Nvidia is getting ready to start shipping its H20 chips to Beijing, a bullish signal for the company’s stock price for several reasons.
For starters, China accounts for roughly 13% of Nvidia’s overall revenue and with rising demand from giants like Tencent (TCEHY) and Alibaba (BABA), the ability to serve this market again could unlock billions in sales.
Additionally, renewed access to China will prevent further inventory write-downs and help NVDA defend its market share against emerging domestic competitors like Huawei.
All in all, resuming business with its customers in Beijing may over time unlock significant further upside in Nvidia stock.
How High Could NVDA Shares Fly in 2025?
Despite explosive returns over the past four months, Truist analyst William Stein continues to see potential for further upside in NVDA shares in the second half of 2025.
Earlier in July, Stein reiterated his “Buy” rating on Nvidia stock, citing its full-stack advantage, not just in chips, but also in software and pre-trained models.
He expects Nvidia will launch a client-side CPU by the end of this year, unlocking an estimated $35 billion in new total addressable market (TAM).
Stein currently sees another 20% upside (roughly) in the AI stock from here.
Nvidia Continues to Be the Street’s Favorite AI Stock
Nvidia’s continued dominance in the AI market is keeping other Wall Street firms bullish on it as well.
According to Barchart, the consensus rating on Nvidia shares remains at “Strong Buy” with the mean target of about $182 indicating potential upside of another 4% from here.
